Africa Oil Completes Farm Down of South Africa’s Orange Basin Block 3B/4B

Thursday, August 29, 2024

Africa Oil Corp. announced the completion of Africa Oil SA Corp.’s (AOSAC) strategic farm down agreement with subsidiaries of TotalEnergies and QatarEnergy for the Orange Basin Block 3B/4B, offshore South Africa.

AOSAC has retained a direct 17.00% interest in Block 3B/4B and transferred the operatorship of the block to TotalEnergies.

Transaction Highlights:

Maximum transaction value of up to $46.8 million to Africa Oil.
Africa Oil will receive, subject to achieving certain milestones defined in the Agreement, staged cash payments for a total cash payment of $10.0 million of which $3.3 million is now due, and the remaining balance in two successive payments conditional upon achievement of key operational and regulatory milestones.
Africa Oil will also receive a full carry of its 17.00% retained share of all JV costs, up to a cap, repayable to TotalEnergies and QatarEnergy from production in case of exploration success and development, which is expected to be adequate to fund the Company’s share of drilling for up to two wells on the license.

Under a separate agreement between Africa Oil, Eco (Atlantic) Oil & Gas Limited (Eco) and Eco’s subsidiary, Azinam Limited, signed in July 2024, AOSAC will acquire an additional 1.00% in Block 3B/4B from Azinam subject to the satisfaction of customary conditions precedent, including approvals from the government of South Africa.

Africa Oil Chief Executive Officer, Dr Roger Tucker, commented: “Africa Oil has an unrivalled position amongst its Independent E&P peer group in the world-class Orange Basin. This includes our interest in the Venus discovery and the follow-on appraisal and exploration upside on Block 2913B, offshore Namibia. This farm down with TotalEnergies and QatarEnergy, two companies with deep geological knowledge of the basin, will facilitate exploration activities on Block 3B/4B, and extends our near-term scope for testing significant upside potential in our portfolio.”

« GO BACK

Petroleum Africa

Africa Oil Completes Farm Down of South Africa’s Orange Basin Block 3B/4B

Petroleum Africa On-The-Go

Africa Oil Completes Farm Down of South Africa’s Orange Basin Block 3B/4B

You may also like

First LNG Realized at the Greater Tortue Ahmeyim Project

United Energy Acquires Western Desert Producer APEX

Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG

ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System

Tullow Highlights 2025 Operational Plans in Ghana

TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years

Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession

Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market

Petroleum Africa On-The-Go