Africa Oil aims to increase direct interest in key assets. (Image source: Adobe Stock)

Orange Basin-situated Block 3B/4B offshore South Africa sees further reshuffling of interests as Africa Oil Corporation has acquired 1.0% additional share from partner Azinam Limited, a subsidiary of Eco Atlantic Oil & Gas Limited 

Last year, Africa Oil had announced a farm down agreement for Block 3B/4B with TotalEnergies and QatarEnergy, which includes the transfer of operatorship of the Block to TotalEnergies. Total enjoys a 33.00% interest, followed by a 24.00% interest by QatarEnergy, 19.75% interest by Ricocure, 18.00% interest by Africa Oil, and a 5.25% interest by Eco Atlantic. 

First drilling

“This transaction is another step in delivering the strategy of increasing direct interest in Africa Oil’s key assets, including our opportunity set in the Orange Basin, a region with high levels of industry interest and activity. We thank Eco Atlantic's management for their collaborative approach in working with us since 2017, and we look forward to further progress towards the drilling of the first exploration well on Block 3B/4B,” said Roger Tucker, CEO, Africa Oil.

While an Environmental Authorisation has been granted by the Department of Mineral Resources and Energy for the Republic of South Africa, the partners are currently awaiting relevant approvals to begin drilling of as many as five exploration wells. Approximately 14,000 sq km of 2D seismic and 10,800 sq km of 3D seismic make up Block 3B/4B, with the greatest prospects lying in an estimated water depth of 1,500m. It is said that the Block holds resources of approximately four billion barrels of oil equivalent.

Shell CEO says that Namibia's acreage was 'very challenging'. (Image source: Adobe Stock)

The much anticipated petroleum exploration license-PEL39 offshore Namibia turned out to be a disappointment for Shell, as the company announced the discovery a write down of approximately US$400mn, reported Reuters 

Speaking about the discovery, the British oil major is reported to have said that the resources from the block 'cannot currently be confirmed for commercial development'. According to Shell CEO, Wael Sawan, Namibia's acreage was 'very challenging', with lower permeability of the rock making exploration difficult. The company is said to have faced wide ranging challenges in the technical and geological fronts, topped by high natural gas presence. Experts believe that having to deal with gas presence even before oil could be produced is no mean feat and requires costly engineering solutions. High gas presence at the beginning of production means once it fizzles out, reservoir pressure sees a sharp decline, rendering oil production a dicey job. 

'Not a setback'

'While we recognise that extracting the discovered resources presents challenges, the extensive data collected shows that there remain opportunities. Together with our partners, we are continuing to explore potential commercial pathways to development, while actively looking for further exploration opportunities in Namibia', read a statement from the company.

This comes as a discord as PEL39 has been very giving since 2022, when Shell and its partners, QatarEnergy and the National Petroleum Corporation of Namibia-NAMCOR made their first discovery in the region. Several others have followed as Shell drilled nine wells in the licence over the last three years. 

Growing global interests from exploration and production companies such as QatarEnergy, Chevron and Galp, to name a few, have set off a whole oil & gas ecosystem in the region, with tech giants Halliburton and Baker Hughes opening facilities, and high stakes logistics contracts coming into effect. 

"It is not a setback. We are positive that the remaining potential of PEL39 and other exploration campaigns will translate into commercial developments," said Namibia's Ministry of Mines and Energy in a statement on Shell's decision. 

A sale and purchase agreement is in place. (Image source: Adobe Stock)

Vantage Drilling International Ltd has created a joint venture entity with TotalEnergies called TEVA Ship Charter LLC

The entity have all definitive agreements executed to acquire the Tungsten Explorer rig, which is currently held under contract for operations in Congo. Once completed, a sale and purchase agreement has been put in place to take over the rig, besides a management agreement that allows Vantage its operation for 10 years with the option to extend for an additional five years.

Offshore drilling collaboration

Ihab Toma, CEO of Vantage Drilling, said, “We are proud to partner with TotalEnergies in this joint venture, marking a significant milestone for both companies. The creation of TEVA and the execution of all definitive agreements reinforce our shared commitment to value creation through collaboration and creative business models in offshore drilling. We look forward to leveraging our expertise to ensure the long-term success of this partnership.”

The company saw a 92% improvement in production efficiency in Q4 2024. (Image source: PetroNor)

PNGF Sud offshore Congo has generated the largest ever single lifting for PetroNor E&P ASA with an additional 881,192 barrels of oil, priced at US$72.817 per barrel 

The aggregated 2024 lifted and sold volumes are 1,795,460 bbls at an average realised price of US$77.85 per barrel. 

Increased production efficiency 

A bounce back since its last update, the company saw a 92% improvement in production efficiency in Q4 2024 following relatively low infrastructure challenges and a successful workover campaign. While workover requirements have gone down, PetroNor has plans for additional infill drilling activities to boost production.

 With mega projects such as Moho Nord and the Gas Master Plan, Congo's hydrocarbons industry continues to thrive.