TotalEnergies' $99M Investment Boosts Its Share In Namibian Oil Discovery Blocks

TotalEnergies SE TTE on Wednesday signed an agreement to acquire from Impact Oil and Gas Namibia an additional 10.5% participating interest in block 2913B and an additional 9.39% participating interest in block 2912, both operated by TotalEnergies in Namibia.

TotalEnergies said its intention is to share this additional participating interest with its strategic partner and joint venture member QatarEnergy.

As per this agreement, Impact will be reimbursed for the past costs incurred for these interests, through a $99 million payment at closing. 

Upon finalizing these deals, subject to standard approvals from Namibian authorities and joint venture partners, TotalEnergies will hold a 45.25% stake in block 2913B containing the Venus discovery, and a 42.5% stake in block 2912. Impact will maintain a 9.5% interest in each of these licenses.

"This transaction not only increases our share in the Venus discovery and remaining prospectivity on these blocks, but also represents a key step toward the development of Venus by consolidating the partnership and securing financing of all partners which will add value to all stakeholders," said Patrick Pouyanné, Chairman and Chief Executive Officer at TotalEnergies.

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Price Action: TTE shares are trading lower by 0.12% to $65.40 premarket on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.