Namibia: TotalEnergies Commits N$5.7b To The Oil Sector

Fench company TotalEnergies, which recently announced a new oil discovery off-shore Namibia, says it has allocated about N$5.7 billion for exploration and appraisal work in the country’s budding oil sector in 2024.

This was said by chief executive Patrick Pouyanne during the recent presentation of the company’s 2023 financial results and objectives for the year 2024.

“Namibia is at the top of our spending priorities for exploration and appraisal and we will again allocate around 30% of our exploration and appraisal budget to Namibia in 2024, because we need to continue assessing the best approach for development,” he said.

This development comes at a time that Shell, another oil major, told miningandenergy.com it had initiated critical flow tests on its Jonker-2A well in Namibia’s Orange Basin to assess the size and reservoir quality of the oil discovery.

The outcome of the envisaged tests would provide valuable insights that could shape Shell’s future investment decisions in the basin and potentially impact Namibia’s fledgling energy sector.

The company had, however, earlier announced it would adopt a cautious approach in developing its oil discoveries in Namibia, because of the high-cost implication of the process.

“We will take our time and be thorough in the way we look through that because these are significant capital investments, and therefore, we want to make sure we are able to deliver returns for our shareholders,” said Shell chief executive Weal Sawan, when presenting the company’s 2023 fourth quarter results.

Pouyanne said TotalEnergies, which announced a new discovery at its Mangetti1X well, potentially boosting the existing recoverable resource base on Block 2913B, was also exploring another potential well south of Venus called Kokerboom.

“I can tell you, we found hydrocarbons again in Mangetti.

“We also found the hydrocarbon level of Venus extending to the north.

“Through the various appraisal wells and tests, it’s clear that it’s not a homogenous field. We have another potential exploration well south of Venus called Kokerboom, and we can also continue appraising what has been discovered,” Pouyanne said.

He reiterated that they will continue drilling as there is a clear initial, and now it’s a matter of optimisation.

“There is much discussion within the company, because everyone is excited,” he said while also confirming that the drilling of Venus-2A, the fourth appraisal well on the giant Venus discovery, is underway.

“The positive results of the Mangett 1X well present us with a new opportunity, potentially adding to the recoverable resource base on Block 2913B.

“Our involvement in Block 2913B continues to be excising, with further work underway to understand the potential of Mangetti, alongside the Venus-2A appraisal well [we are] currently drilling,” Africa Oil president and chief executive Roger Tucker told miningandenergy.com.

Petroleum Exploration Licence 56, Block 2913B is located offshore southern Namibia and covers approximately 8 215 square kilometres in water depths between 2 450m and 3 250m

Impact Oil and Gas, in which Africa Oil has an interest through its 31,1% shareholding, currently holds a 20% interest in the block.

TotalEnergies, the operator, holds a 40% interest, QatarEnergy holds 30% interest and the Namibian state oil company Namcor, holds a 10% stake.

Source:https://energynewsafrica.com