QP signs agreement with TotalEnergies to enter South African exploration blocks.
Qatar Petroleum (QP) signed a deal with France’s TotalEnergies to enter three offshore exploration blocks in South Africa as the Gulf state seeks to expand its overseas portfolio, the state-owned company confirmed on Sunday.
Based on the terms of the agreement that are subject to customary approval by the South African government, the Qatari-owned LNG producer will own 25% of the South Outeniqua block, 30% of the DWOB block and 29.17% of the OBD block.
“These acquisitions represent an excellent addition to our South African regional upstream portfolio, and build upon the positive progress following the recent drilling success in the 11B/12B block,” said the Minister of State for Energy Affairs and President and CEO of Qatar Petroleum Saad bin Sherida Al Kaabi.
“We are delighted to have the opportunity to work with our strategic partner TotalEnergies to explore these promising and prospective blocks, and to further develop our relationship with the South African Government and other joint venture partners, whilst also pushing forward with Qatar Petroleums ambitious growth strategy. I would like to take this opportunity to thank the South African authorities and partners for their valuable support and cooperation,” he added.
QP is now the world’s biggest LNG producer with a number of overseas upstream and downstream deals in countries including Oman, Mexico, Mozambique, Angola, Kenya, Guyana, the US, Brazil, Ivory Coast, Mozambique, Kenya and Morocco.
The South Outeniqua block covers around 49,000sq km in water depths reaching up to 5,000 meters. TotalEnergies will act as operator and hold the remaining participating interest.
The block is located directly south of the 11B/12B block where TotalEnergies, QP and Canadian Natural Resources Limited and Main Street Ltd. have announced major gas condensate discoveries in the Brulpadda and Luiperd prospects. The discovery was dubbed one of the world’s greatest finds last year.
“The DWOB and OBD blocks cover a combined area of about 53,000 square kilometres in water depths ranging between 1,000 and 4,200 meters and are located in the Orange Basin directly south of Namibian blocks 2912 and 2913B in which Qatar Petroleum already holds participating interests, and in close proximity to Blocks 2913A and 2914B, into which Qatar Petroleums entry was recently announced, pending customary approvals,” according to state news agency.
The other JV partners in the DWOB block are TotalEnergies (operator) with a 50% stake, and Sezigyn with a 20% interest.
In the OBD block, the JV partners are TotalEnergies (operator) with a 48.61% stake and Impact with a 22.22% interest.