TotalEnergies chairman and CEO Patrick Pouyanné is “completely optimistic” about Namibia, he told a conference call today.
The Southern African state is a top priority for the company, which has dedicated 30% of its exploration and appraisal budget to the country. The executive was speaking on TotalEnergies’ results.
The French company is currently drilling the Venus-2A appraisal well and the Mangetti-1 exploration well. During 2023, the company reported success at the Venus-1A well and two flow tests.
Pouyanné said the company had found “some hydrocarbons” at Mangetti. He confirmed that the exploration well had found an extension of the Venus reservoir. Mangetti-1 is to the north of the Venus finds.
“There are a lot of hydrocarbons, there are some sweet spots in terms of productivity [and] permeability. There are some areas which have less good characteristics,” he said.
“I repeat that on our side we see a first development clearly in our hands,” the executive said. “We will continue to drill … because everybody is excited. We have another exploration potential well on the south of Venus and we continue to appraise what has been discovered.”
Pouyanné did not provide specific flow rates for the Venus find. He said one drill stem test had been “very good” but the location of the second was not optimal.
“It demonstrates some heterogeneity. That’s why we need to be sure that when we develop, we develop and we locate the FPSO on the right spot, not to be too far from the sweet spots we want to develop.”
Optimising the location of equipment, he said, would minimise the cost of development.
Total agreed to buy out some of Impact Oil and Gas’ stake in Namibia’s Blocks 2912 and 2913B, in exchange for carrying the minnow to first production. Africa Oil, which is an investor in Impact, has highlighted the appeal of the southern area of the blocks as a major reason for continued presence.
Strategic moves
Total is currently acquiring 3D seismic in the southern area of the blocks, next to the South African border.
Earlier this week,TotalEnergies executed a deal with Vantage Drilling International. Under the arrangement, Total will have a 75% stake in the Tungsten Explorer drillship, which it is using to drill the northern Mangetti well.
It acquired the interest for a payment of $199 million. Chairman and CEO Pouyanné said the deal provided the company with a means to offset deepwater drilling costs.
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