Oil exploration in Namibia has succeeded in attracting large numbers of major international energy companies, the latest of which is Woodside, which wants to expand its investment portfolios in this emerging and promising industry in the country located in southwest Africa.
Windhoek has made rapid strides in recent years towards developing its oil industry, bolstered by its huge capabilities from the many fathers stationed off the coast of the country.
In this context, Woodside Energy, the Australian oil and gas operator, returned to Africa, specifically to its oil exploration activities in Namibia, by signing a contract that gives it the option to purchase the “BEL 87” well of its compatriot, “Bancontinental Energy”, located off the coast. Namibian, as reported by the specialized Energy Voice website.
The oil exploration license “BEL 87” is located to the north of the recent explorations carried out by “Total Energy”, the French energy giant, and its counterpart, “Shell” Anglo-Dutch, and the license itself – also – is located north of the site that Chevron is working on. American oil, according to information seen by the specialized energy platform.
holding licenses
Under the license agreement, Woodside Energy will pay $35 million for the right to use the well, which is estimated to be at least 5,000 square kilometers in size, and the company will also pay $1.5 million in cash to BanContinental Energy.
In return for the financing, Woodside will be entitled to own 56% of the site as its operator, before the company undertakes other oil exploration activities at the aforementioned site.
Bancontinental Energy Director Barry Rushworth said, “BEL 87 has huge potential and a geological nature that is well suited to oil exploration.”
Rushworth explained: “Oil exploration in Namibia is proceeding in full swing and at a rapid pace, with plans to start implementing a 3D seismic survey on the site later in March (2023), and the Saturn site is now being evaluated independently, with estimates indicating its ownership.” Potential estimated in the billions of oil barrels, as Bancontinental Energy previously reported in September (2018).
Rushworth expects to read the results of the 3D seismic survey in mid-2023.
Drill a second well
Woodside Energy may well drill a second well, knowing that Bancontinental Energy will be entitled to finance its 20% stake, or even transfer another 10% stake to Woodside Energy.
Currently, Bancontinental Energy has a 75% interest in BEL87, Costus Investments has a touch interest of 15%, and the remaining 10% belongs to Namcor.
Assuming the transaction is completed, Bancontinental Energy has the option to purchase a 1% stake in private equity firm Costos to keep its 20% stake for $1 million.
It is reported that Costos is backed by influential Namibian businessman Knowledge Katie.
The license covers 10,970 square kilometers, and it includes the “Saturn Torpedite” complex, and it is comparable to the oil discoveries announced by “Venus”, “Graf” and “La Rona” companies last year (2022), in addition to the oil discovery announced by them. The company “Junker-1” revealed the current year (2023).
In addition to the oil exploration activities carried out by Shell and Total Energy in the region, Portuguese oil and gas leader Galeb Energia plans to explore another well at a site adjacent to the BEL 83 well in Namibia in 2023.
Oil exploration in Namibia
Namibia is the latest African country bordering the Atlantic Ocean to embark on oil production, and this is attributed to the discoveries of the global Total Energy and Shell groups.
In this context, the Minister of Mines and Energy in Namibia, Tom Alwindo, announced – earlier – the availability of commercial quantities with the discoveries of the two companies in the country, without revealing details about those quantities.
And in February (2023), Alwindo said, on the sidelines of a press conference on oil, held in the Senegalese capital, Dakar: “Shell and Total are still unwilling to disclose the quantities of oil available with their discoveries in Namibia, but they hinted at the availability of commercial quantities exceeding billions.” barrels”.
Alwindo stated that the production of Shell and Total in the new oil discoveries may start within 4 years, instead of 6 years, according to previous statements by the two companies, but no decision has been made on this matter yet.
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