CNEL will acquire an 80% working interest and operatorship of PEL 82, which encompasses blocks 2112B and 2212A in the Walvis Basin offshore Namibia and is covered by more than 3,500km of 2D and 9,500 km2 of 3D data
Chevron acquires majority stake in PEL 82. (Credit: Grant Durr on Unsplash)
Chevron, through its affiliate Chevron Namibia Exploration Limited (CNEL), has signed a farm-in agreement with the National Petroleum Corporation of Namibia (NAMCOR) for Petroleum Exploration License 82.
The agreement will see CNEL acquire an 80% working interest and operatorship of PEL 82, which encompasses blocks 2112B and 2212A in the Walvis Basin offshore Namibia.
Around 70% of the total block area is covered by existing seismic surveys, including more than 3,500km of 2D and 9,500km2 of 3D data.
NAMCOR and Custos Energy will each maintain a 10% carried interest in the license, while Sintana Energy maintains an indirect 49% interest in Custos.
Custos chairman and CEO, and Sintana director Knowledge Katti said: “We are pleased to announce the continuing expansion of our in-country partnership with Chevron through their entry in PEL 82.
“This is one of the most advanced and interesting opportunities offshore Namibia outside of the Orange Basin.
“We are pleased to see our efforts over the last decade on PEL 82 result in this important step forward adding further to Namibia’s world-class offshore opportunity.”
The PEL 82 has previously seen drilling at the Murombe-1 and Wingat-1 wells, which confirmed the regional extension of the Barremian-Aptian oil-prone source rock known as the Kudu shale.
The Murombe-1 penetrated the Baobab sands returning approximately 20% porosity, and the Wingat-1 well recovered 38-41° API oil to the surface.
In addition to the farm-in agreement, Custos has entered into a co-operation agreement with the Walvis Bay Poverty Reduction Trust (WBPRT).
The agreement enables WBPRT as the primary beneficiary of Custos’s corporate social responsibility (CSR) efforts.
Sintana CEO and Board Member Robert Bose said: “The expanding partnership with Chevron in Namibia speaks to the quality of our Namibian portfolio.
“The timeliness of our entry and the unmatched nature of our portfolio continue to be demonstrated as Namibia emerges as the world’s next great hydrocarbon province.”
The current agreement extends Chevron Namibia Exploration’s operatorship in the region, including PEL 90, an offshore deepwater block in the productive Orange basin.