International energy group Total announced on Monday that it would sell, subject to regulatory approval, a 25% interest in Exploration Block 11B/12B, offshore South Africa, to Qatar Petroleum.
The block is located in the Outeniqua basin, around 175 km off the southern coast of South Africa. It covers an area of 19 000 km2, with water depths ranging from 200 m to 1 800 m.
In a joint media statement, Total and Qatar Petroleum said that, upon receiving all regulatory approvals the new partnership structure would comprise: Total (45%), Qatar Petroleum (25%), CNR International (20%) and Main Street (10%).
Total would be the operator of the concession.
Total exploration and production president Arnaud Breuillac said the transaction enhanced the partnership on Block 11B/12B in preparation for the “high potential exploration well” scheduled to be drilled at the end of 2018.
Qatar Petroleum president and CEO Saad Sherida Al-Kaabi described the deal as a milestone in its strategy to expand the group’s international upstream footprint.
“We are pleased to join our long-time partner Total in exploration activities in this frontier block offshore South Africa,” Al Kaabi said in a statement.
The value of the proposed transaction was not disclosed.