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TotalEnergies (TTE) Raises Stake in Offshore Namibian Oil Blocks
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TotalEnergies SE (TTE - Free Report) announced that it has signed an agreement to acquire an additional 10.5% participating interest in block 2913B and 9.39% participating interest in block 2912 from Impact Oil and Gas Namibia (Pty) Ltd.
Both these blocks are operated by TotalEnergies. TotalEnergies will share this increased participation stake with the QatarEnergy, a joint venture partner.
Details of the Agreement
TotalEnergies would own a 45.25% stake in block 2913B, which contains the Venus discovery, and a 42.5% interest in block 2912 following the conclusion of these agreements, which are subject to normal third-party clearances from Namibian authorities and joint venture participants. A 9.5% stake in each license will be retained by Impact Oil and Gas Namibia.
In accordance with this agreement, Impact Oil and Gas will receive a $99 million payment at closure to cover the previous expenses expended for these interests. Impact Oil and Gas will also be carried for its remaining interests, secured by a repayment mechanism based on its production share, until it obtains the first sales earnings from the production of hydrocarbons.
Focus on Namibia’s Growth
TotalEnergies has been present in Namibia since 1964. The company operates two offshore exploration licenses in the Orange basin. TotalEnergies is also the fourth largest fuel distributor in the country, with 40 service stations. TotalEnergies lays out the potential for its oil discoveries in Namibia and continues to bet on oil and gas to boost profits while also growing its low-carbon business.
Per the National Petroleum Corporation of Namibia release, Namibia’s oil reserves are nearly 11 billion barrels, which will undoubtedly attract the big oil and gas companies. TotalEnergies and Shell plc (SHEL - Free Report) have made some discoveries in Namibia in recent years. Additionally, major oil companies like Chevron Corporation (CVX - Free Report) , ExxonMobil, and Galp Energia have initiated exploration and appraisal activities in the region.
In July 2023, Shell announced its fourth oil discovery offshore Namibia. The successful drilling has confirmed the presence of hydrocarbon, marking a milestone in the company's efforts to explore and leverage new oil resources. The positive performance of the wells drilled by Shell and its partners further reinforces its confidence in Namibia. The collaboration between Shell, QatarEnergy and Namibia's national oil company sets the stage for continued progress in offshore exploration and production.
SHEL’s long-term (three-to-five-year) earnings growth rate is 9.33%. It delivered an average earnings surprise of 11.8% in the last four quarters.
In November 2023, Chevron applied for clearance for Namibian offshore drilling, signaling the energy giant's intent to undertake oil and gas exploration activities in the Orange Basin offshore Namibia. CVX's strategic move into the Namibian offshore region aligns with broader industry trends, highlighting the potential for significant hydrocarbon discoveries.
CVX’s long-term earnings growth rate is 14.27%. The Zacks Consensus Estimate for 2024 earnings is pinned at $14.51 per share, indicating year-over-year growth of 11.3%.
Price Performance
In the past six months, shares of TotalEnergies have risen 11.3% compared with the industry’s 12.8% growth.
The Zacks Consensus Estimate for fiscal 2024 earnings is pinned at $1.16 per share, indicating year-over-year growth of 1.8%. It delivered an average earnings surprise of 198.3% in the last four quarters.
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TotalEnergies (TTE) Raises Stake in Offshore Namibian Oil Blocks
TotalEnergies SE (TTE - Free Report) announced that it has signed an agreement to acquire an additional 10.5% participating interest in block 2913B and 9.39% participating interest in block 2912 from Impact Oil and Gas Namibia (Pty) Ltd.
Both these blocks are operated by TotalEnergies. TotalEnergies will share this increased participation stake with the QatarEnergy, a joint venture partner.
Details of the Agreement
TotalEnergies would own a 45.25% stake in block 2913B, which contains the Venus discovery, and a 42.5% interest in block 2912 following the conclusion of these agreements, which are subject to normal third-party clearances from Namibian authorities and joint venture participants. A 9.5% stake in each license will be retained by Impact Oil and Gas Namibia.
In accordance with this agreement, Impact Oil and Gas will receive a $99 million payment at closure to cover the previous expenses expended for these interests. Impact Oil and Gas will also be carried for its remaining interests, secured by a repayment mechanism based on its production share, until it obtains the first sales earnings from the production of hydrocarbons.
Focus on Namibia’s Growth
TotalEnergies has been present in Namibia since 1964. The company operates two offshore exploration licenses in the Orange basin. TotalEnergies is also the fourth largest fuel distributor in the country, with 40 service stations. TotalEnergies lays out the potential for its oil discoveries in Namibia and continues to bet on oil and gas to boost profits while also growing its low-carbon business.
Per the National Petroleum Corporation of Namibia release, Namibia’s oil reserves are nearly 11 billion barrels, which will undoubtedly attract the big oil and gas companies. TotalEnergies and Shell plc (SHEL - Free Report) have made some discoveries in Namibia in recent years. Additionally, major oil companies like Chevron Corporation (CVX - Free Report) , ExxonMobil, and Galp Energia have initiated exploration and appraisal activities in the region.
In July 2023, Shell announced its fourth oil discovery offshore Namibia. The successful drilling has confirmed the presence of hydrocarbon, marking a milestone in the company's efforts to explore and leverage new oil resources. The positive performance of the wells drilled by Shell and its partners further reinforces its confidence in Namibia. The collaboration between Shell, QatarEnergy and Namibia's national oil company sets the stage for continued progress in offshore exploration and production.
SHEL’s long-term (three-to-five-year) earnings growth rate is 9.33%. It delivered an average earnings surprise of 11.8% in the last four quarters.
In November 2023, Chevron applied for clearance for Namibian offshore drilling, signaling the energy giant's intent to undertake oil and gas exploration activities in the Orange Basin offshore Namibia. CVX's strategic move into the Namibian offshore region aligns with broader industry trends, highlighting the potential for significant hydrocarbon discoveries.
CVX’s long-term earnings growth rate is 14.27%. The Zacks Consensus Estimate for 2024 earnings is pinned at $14.51 per share, indicating year-over-year growth of 11.3%.
Price Performance
In the past six months, shares of TotalEnergies have risen 11.3% compared with the industry’s 12.8% growth.
Image Source: Zacks Investment Research
Zacks Rank & A Key Pick
The company currently has a Zacks Rank #3 (Hold).
Another better-ranked stock from the same industry is RGC Resources (RGCO - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for fiscal 2024 earnings is pinned at $1.16 per share, indicating year-over-year growth of 1.8%. It delivered an average earnings surprise of 198.3% in the last four quarters.