There's a bit to it...TotalEnergies boosts its stake in giant...

There's a bit to it...

TotalEnergies boosts its stake in giant Venus oil discovery in Namibia

"Impact is to receive a US$99 million payment at closing, reimbursing the company for past costs incurred for these additional interests.

On the closing of this transaction Impact will have a 9.5% interest in Blocks 2912 and 2913B (together, "the Blocks") that is fully carried for all joint venture costs, with no cap, through to first commercial production.

The carry is repayable to TotalEnergies from a share of Impact's after-tax cash flow and net of all joint venture costs, including capital expenditures, from production after first oil is achieved.

During the repayment of the carry, Impact will pool its entitlement barrels with those of TotalEnergies for more regular off-takes and a more stable cashflow profile, and will also benefit from TotalEnergies' marketing and sales capabilities."

"It also reinforces our view of TotalEnergies' confidence in the development outlook for the Venus oil discovery and the follow-on prospectivity of the two blocks," he added.Tucker said the deal means its shareholders retain the upside potential from the on-going exploration and appraisal campaign on Block 2913B "with significant prospects" scheduled to be drilled in 2024, with zero capital expenditure to Impact."