Africa Oil Corp. (AOI.TO) announced on Monday its increased stake in Block 3B/4B, located offshore South Africa, raising its direct interest to 18%. This block, managed by the French energy giant TotalEnergies SE (TTE), is positioned in the southeast, aligned with several notable oil finds in the Orange Basin, notably the Venus discovery.
The Canadian oil and gas entity, which holds assets across Nigeria, Namibia, and Africa, along with its subsidiary Africa Oil SA Corp. (AOSAC), finalized a deal with Eco (Atlantic) Oil & Gas Limited and its subsidiary Azinam Limited. As part of the agreement, Azinam has transferred a 1% stake in Block 3B/4B to Africa Oil. In return, Africa Oil has nullified the shares and warrants it previously held in Eco.
Consequently, the Africa Oil group now commands an 18% direct interest in Block 3B/4B.
On August 28, 2024, the company disclosed the finalization of a farming-down agreement for Block 3B/4B with TotalEnergies and QatarEnergy. AOSAC maintained a direct 17% interest while transferring the block's operatorship to TotalEnergies for a potential maximum remuneration of $46.8 million.
Additionally, the company highlighted that AOSAC will benefit from the exploration carry related to the extra 1% interest assigned by Azinam.
Other stakeholders in the block include: TotalEnergies, holding a 33% operated interest; QatarEnergy with a 24% stake; Ricocure possessing 19.75%; and Eco with a 5.25% interest.
Roger Tucker, CEO of Africa Oil, expressed, "This transaction marks another advancement in our strategy to augment direct interests in Africa Oil’s fundamental assets, particularly in the Orange Basin, a region characterized by elevated industry interest and activity. We extend our gratitude to the management at Eco Atlantic for their cooperative approach since 2017 and eagerly anticipate further progress towards the initiation of drilling for the first exploration well on Block 3B/4B."
The material has been provided by InstaForex Company -
www.instaforex.com
