IN a move signalling heightened activity in Namibia’s energy sector, the National Petroleum Corporation of Namibia (NAMCOR) has sealed a pivotal development agreement with Chevron, granting the US oil giant an 80 percent operating working interest in an offshore block situated in the Walvis Basin. The announcement, made by NAMCOR on Monday, highlights the growing allure of Namibia’s untapped oil reserves.
With Namibia emerging as a promising frontier basin, oil companies are increasingly drawn to the region, enticed by recent offshore discoveries that rank among the largest of this century. The farm-out agreement with Chevron Namibia Exploration Limited (CNEL) underscores the country’s strategic plans to open up its energy resources to international investment.
Under the terms of the agreement, NAMCOR and local firm Custos Energy will each retain a 10 percent interest in petroleum exploration licence 82, reaffirming Namibia’s commitment to fostering partnerships in its burgeoning energy sector.
Commenting on the deal, a Chevron spokesperson expressed enthusiasm, stating, ‘Chevron looks forward to working with our partners to continue exploration activities and support Namibia’s energy sector.’
In addition to this latest venture, Chevron Namibia Exploration Ltd also holds operatorship of PEL 90, an offshore deepwater block located in the prolific Orange Basin. Notably, Galp, another key player in the energy sector, recently made a substantial discovery in the same region earlier this month, further underscoring the basin’s potential.
The Chevron spokesperson confirmed the company’s intention to further explore the block by drilling an exploration well in the fourth quarter of this year, indicating a proactive approach to harnessing Namibia’s energy resources.
Welcoming the partnership, NAMCOR’s interim managing director, Ebson Uanguta, emphasised its significance, saying, ‘Our partnership with CNEL and Custos Energy represents a shared vision for the future of Namibia’s energy landscape.’
Namibia, although yet to commence oil or gas production, has rapidly emerged as an exploration hotspot following significant offshore discoveries by industry heavyweights such as TotalEnergies and Shell. With ambitious plans for first output projected by 2030, Namibia’s energy sector is poised for substantial growth and development.