Exploration

Impact completes farm out transaction with TotalEnergies in Namibia

Impact now holds a 9.5% interest in each of Blocks 2912 and 2913B. (Image source: Impact Oil & Gas)

Impact Oil & Gas Limited has completed the farm out of its interests in Blocks 2912 and 2913B offshore Namibia to TotalEnergies EP Namibia BV

This development was made possible following the receipt of relevant regulatory approvals from the Government of Namibia and consent from joint venture partners.

The farm out agreement between Impact Oil and Gas Namibia (Pty) Ltd and TotalEnergies EP Namibia BV dates back to 10 January 2024, wherby the decision was reached for the sale of a 9.39% undivided participating interest in Block 2912, and a 10.5% undivided participating interest in Block 2913B.

The transaction provides Impact with a carry loan for all of its remaining development, appraisal and exploration costs on the Blocks from 1 January 2024, until the date on which Impact receives the first sales proceeds from oil production on the Blocks. The carry loan is repayable from a share of Impact’s after-tax cash flows, and net of all joint venture costs, including capital expenditures, from production on the Blocks. In addition, on completion of the transaction, Impact received approximately US$99mn from TotalEnergies, as reimbursement for its share of costs incurred on the Blocks net to the farm out interests, prior to 1 January 2024.

Following completion of this transaction, Impact holds a 9.5% interest in each of Blocks 2912 and 2913B.

Siraj Ahmed, CEO of Impact, said, “We are pleased to have received approval from the Government of Namibia for our farm-out and look forward to continuing our journey towards first oil in Namibia. This is a transformational transaction for the company, securing Impact’s future participation in this exciting play. Additionally, this transaction, through the carry, gives Impact a funded exposure to further significant exploration opportunities in the Blocks, starting with the recently spud Tamboti-1X well.

“We look forward to continuing our longstanding partnership with NAMCOR, TotalEnergies and QatarEnergy, and would like to thank the TotalEnergies team for their ongoing collaboration.”

This transaction serves Impact's ambition for transition from an exploration company to a hydrocarbon-producing company.

3D seismic raises promising prospects

With the successful penetration and testing of four drilled wells since the 2022 Venus-1X discovery, planning is on for the first development area to be finalised by 2025 end.

Data is currently being processed for interpretation from the licenced area over the southern and northern parts of the combined blocks, most of which are now covered by 3D seismic.

TotalEnergies has recently extended its contract with Northern Ocean for DeepSea Mira, which has already unlocked significant additional resource in the north of Block 2913B after spudding the Tamboti-1X well. Further deployment of the semi-submersible drilling unit might be required once prospects in the southern part of the Blocks that are currently being matured by the recent 3D-seimic data possibly heighten chances of potential high impact exploration wells.

Sequa Petroleum to acquire interests in multiple blocks in Angola

Block 15/06 is one of the most prolific licences in Angola. (Image source: Adobe Stock)

The Government of Angola has approved Sequa Petroleum NV's acquisition of participating interests in Block 15/06 (10%), Block 23 (40%, with operatorship), and Block 27 (35%)

Block 15/06 is one of the most prolific licences in the Angola deepwater with current oil production approximately 100,000 barrel of oil per day, forecasted to increase beyond 200,000 bopd within two years through an ongoing development programme.

Angola is further opening its doors to investors from around the globe as Angola's National Oil, Gas & Biofuels Agency (ANGP) prepares to offer 10 blocks in the Kwanza and Benguela Basins early next year.

Transaction details

The SPNV transaction process that dates back to 2022 following the issuance of an independent review of Block 15/06 is set to finally come to a close around the end of this year. The SPE PRMS guidelines-backed and updated review for estimated remaining recoverable volume of the 10% interest sums up to 72 million barrels of oil since January 2024 (around 78 million barrels from the effective date).

The transaction is planned to be funded through a combination of equity contributions from the partners, and third-party debt.

Angola’s minister of mineral resources, oil and gas, Diamantino Azevedo, highlighted new industry policies in the country such as the permanent offering of blocks, among others, while speaking at the Angola Oil & Gas 2024 conference.

CNOOC Africa Holding, Midland Oil sign EDPC deal in Iraq

The contract makes CNOOC Africa Holding the operator of Block 7. (Image source: Adobe Stock)

CNOOC Limited's wholly owned subsidiary, CNOOC Africa Holding Ltd, has entered into an exploration, development and production contract (EDPC) with Midland Oil Company for Block 7 in the Republic of Iraq

Block 7 is located in Province Diwaniyah, spanning across an area of 6,300 square kilometers.

Operator status

With a 100% interest, the contract makes CNOOC Africa Holding the operator of Block 7. The first stage of the exploration period shall be three years.

CNOOC has a long-standing presence in Africa, from Uganda's Albertine Graben region to nearly US$14bn interests in Nigerian operations, among others.

Eni, bp resume onshore exploration in Ghadames Basin

Exploration activities began with the drilling of A1-96/3 (Hasheem Prospect). (Image source: NOC Libya)

Eni and bp have resumed their exploration activities in Libya for the first time in the Area B (96/3) of Ghadames Basin, where onshore operations were haulted since 2014

Repsol is also preparing to restart drilling in Murzuq Basin, and OMV is set to begin operations in Sirte Basin in the coming weeks.

Last month, the Libya-Italy Roundtable and VIP Networking Evening took place in Rome with a purpose to unlock new partnership and investment opportunities, especially targetting private sector participation.

Exploration activities in Area B (96/3) began this month, with the drilling of the first exploratory well, A1-96/3 (Hasheem Prospect) that is projected to reach a final depth of approximately 10,327 ft (3,147 m).The well is located about 35 kms from the Wafa field and approximately 650 kms from Tripoli. Several promising geological formations in the A1-96/3 well will be tested for oil and gas presence.

Supervision by Mellitah Oil & Gas joint venture

Contracted following the Fourth Bid Round Contract of 2007, Eni operates the area in partnership with bp and the Libyan Investment Authority. The Mellitah Oil & Gas joint venture, with its extensive experience in the region, particularly in developing and managing the Wafa field, is overseeing the drilling operations and all related activities for the well.

The Mellitah venture that comprises the National Oil Corporation of Libya and Eni North Africa, is also spearheading the revamping of the Bauri Gas Utilisation project.

Second campaign follows positive results from Mopane

The drill ship Santorini has arrived on location. (Image source: Sintana Energy)

Blocks governed by Petroleum Exploration License 83 (PEL 83), namely 2813A and 2814B, in Orange Basin Namibia has undergone a second exploration and appraisal campaign

The drill ship Santorini has arrived on location, and operations associated with the Mopane 1-A well have commenced.

This appraisal well is the first of an up to four-well programme potentially consisting of two exploration wells and two appraisal wells. This second campaign on PEL 83 is predicated on providing additional insights into the scope and quality of the Mopane complex.

Previously, an inaugural two-well exploration campaign that commenced in Q4 2023 resulted in multiple discoveries of significant columns of light oil in high-quality reservoir sands providing for an initial estimate of original oil in place of 10 bn boe. A drill stem test was also conducted resulting in an infrastructure constrained flow of 14,000 boed.

World class opportunity

Initial analysis suggests the reservoirs have good porosities, high pressures and high permeabilities in large hydrocarbon columns with very low oil viscosity, and no CO2 nor H2S. The flows achieved during the well test have reached the maximum allowed limits, positioning Mopane as, potentially, an important commercial discovery.

“We look forward to the continuing progress on PEL 83, further unveiling of the potential and quality of the Mopane complex. These efforts should provide additional insights into this world class opportunity and into our broader Orange Basin portfolio located at the heart of this emerging hydrocarbon province,” said Robert Bose, CEO of Sintana.

PEL 83 is operated by a subsidiary of Galp Energia. Sintana maintains an indirect 49% interest in Custos Energy, which in turn owns a 10% working interest in PEL 83. The National Petroleum Company of Namibia (NAMCOR), also maintains a 10% working interest. This finding adds to the treasures unveiled from other licenses in the region that host Graff-1, La Rona-1,Jonker-1 and Venus-1.

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