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TotalEnergies, Qatar expand Orange Basin holdings to South Africa

TotalEnergies and Qatar's oil company on Wednesday stated they would buy a stake in a licence to seek oil and gas off South Africa as part of their plans to establish the Orange basin area in neighbouring Namibia.

The French company will buy a 33% stake in the licence to drill in overseas block 3B/4B, which extends over about 18,000 square kilometres, while state-owned QatarEnergy will hold a 24%. stake, the 2 companies stated without revealing the worth of. the deal.

The rest will be controlled by the existing owners of. the project Africa Oil, Azinam, which is owned by. Canada-listed Eco Atlantic and Ricocure.

TotalEnergies and QatarEnergy have longstanding agreements. to partner on expedition and production in Namibia, Guyana and. Kenya.

Block 3B/4B lies in South Africa's side of the Orange. Basin, just south of huge discoveries by Galp, Shell. and TotalEnergies' own Venus discovery in neighbouring. Namibia.

Following the Venus success in Namibia, TotalEnergies is. continuing to advance its Expedition effort in the Orange. Basin, said Kevin McLachlan, Senior Vice-President Expedition. of TotalEnergies.

Namibia, which has no oil and gas production, has become a. international exploration hotspot after deep water discoveries by. Shell, TotalEnergies and Galp in recent years.

Eco Atlantic CEO Gil Holzman informed : TotalEnergies. are the best partner one might have, they understand the Orange Basin. better than anyone else, they have a drilling rig in the area,. and they are a fantastic operator with a strong balance sheet.

The Orange Basin is mainly untouched, with dozens of. tradition wells drilled in shallow rack waters along South. Africa's shoreline.

South Africa's side of the Orange Basin resembles those of. Namibia, it is highly potential with at least 2 prospects in. the northern area of the basin potentially including millions. of barrels of oil and associated gas, said Jonathan Salomo, the. lead geologist for the West coast at the Petroleum Firm of. South Africa.

(source: Reuters)