Qatar Petroleum, the world’s largest LNG producer, has announced an arrangement with France’s TotalEnergies to obtain an interest in three South African offshore exploration blocks.
Under the provisions of the understanding that are still dependent on the South African government’s endorsement, Qatar Petroleum will possess 25% of the South Outeniqua block, 30% of the DWOB block, and 29.17% of the OBD block, the company stated on July 4.
“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 Qatar Petroleum’s CEO and Qatar’s Minister of State for Energy Affairs, Saad al-Kaabi, in a statement.
Qatar Petroleum has shown a deep interest to extend its global reach in the past few years and as of late has ventured into new projects to grow an overall gas-centric upstream portfolio.
TotalEnergies, under this new agreement, would hold a 75% stake at the South Outeniqua block, functioning as that block’s administrator. South Outenique block is located south of the 11B/12B block, where a consortium composed of TotalEnergies, Qatar Petroleum, Canadian Natural Resources Ltd. and Main Street Ltd have reported huge gas and condensate discoveries in the Brulpadda and Luiperd.
Promoted as probably one of the greatest prospecting discoveries of last year, TotalEnergies’ deepwater natural gas and condensate discovery at the Brulpadda prospect was reported (link above) in February 2019.
Estimated to hold around 1 billion barrels of gas and condensate, Brulpadda is South Africa’s first major offshore discovery, spurring a new interest in drilling around the area.
DWOB block also counts with TotalEnergies as administrators with a 50% stake, and Sezigyn with a 20% participation. For the OBD block, the TotalEnergies acts as administrators with a 48.61% stake and Impact with a 22.22% premium.