Africa Oil announced on Wednesday a strategic agreement signed with units of TotalEnergies and QatarEnergy for the acquisition of participating interests in Block 3B/4B in the Orange Basin, offshore South Africa.
The maximum transaction value is put at up to $46.8 million.
On completion of the transaction, subject to the satisfaction of customary conditions, the operatorship of Block 3B/4B will transfer to TotalEnergies.
Africa Oil has entered the deal jointly with its partners Eco (Atlantic) Oil & Gas Limited and Ricocure (Proprietary) Ltd, through their respective subsidiaries.
In the deal, Africa Oil will receive staged payments for a total cash amount of $10 million, of which $3.3 million is payable at completion. The remaining balance in two successive payments is conditional on the achievement of key operational and regulatory milestones.
The company currently has an operated 26.25% interest in Block 3B/4B. Eco holds a 20% interest and Ricocure a 53.75% interest.
Following the deal, Africa Oil will retain a 17% interest, while TotalEnergies will hold 33% and QatarEnergy will hold 24%. Ricocure will retain 19.75% and Eco 6.25%.
Africa Oil chief executive officer, Roger Tucker, said: "Attracting TotalEnergies and QatarEnergy as our new partners in Block 3B/4B is an endorsement of the exploration potential of the block.
"These opportunities are on trend with the discoveries in Namibia's Orange Basin, including Venus in Block 2913B. Both companies have deep geological knowledge of the basin with successful nearby discoveries. TotalEnergies, as the new operator, also brings extensive deepwater drilling and development expertise."
