New player in Namibia’s offshore sector
Farm-in agreement boosts offshore sector
NAMIBIA: Azule Energy is the latest energy company to enter into Namibia’s offshore oil and gas space having signed an agreement with Rhino Resources Namibia to farm-in to offshore Block 2914A.
Under the terms of the agreement, Azule Energy has secured a 42.5% interest in Block 2914A – located in PEL 85. Following the completion of the acquisition, Azule Energy plans to drill two high-impact exploration wells with the initiation of the first well anticipated as early as Q4, 2024.
“Our entry into offshore Naminia represents a significant milestone for Azure,” said Adriano Mongini, CEO of Azule who describes the farm-in deal as a strategic move. The agreement also provides Azule with the option to become the operator of PEL85.
The Executive Chairman of the African Energy Council, NJ Ayuk weighed in on the developments describing Namibia as one of the “world’s most prospective, underexplored hotspots” for offshore oil and gas investment.
“We still believe that there will be many more similar farm-in deals by companies holding exploration assets in this emerging country,” he said.
The Orange Basin continues to reveal substantial deposits of untapped oil and gas. The discovery of light oil in the Enigma-1X well - located in PEL 39 – by energy major Shell marked the latest addition to Namibia’s string of sizeable oil discoveries. The discovery followed the Venus-1X, Graff 1-X, Jonker-1X, La Rona-1X, Lesedi-1X, Mopane-1X, and Mopane-2X finds, showcasing the immense potential lying within the basin. With each find, Namibia inches closer to harnessing these opportunities for commercialization. As the government progresses towards a strategic plan to capitalize on these prospects, it aims to streamline regulatory frameworks, attract further investment and foster sustainable delopment in the energy sector.
In this context, Azule Energy’s Farm-In Agreement assumes greater significance, as it underscores the company’s commitment to exploring and developing the region’s hydrocarbon resources. By participating in the exploration activities in Namibia’s Orange Basin, Azule Energy not only demonstrates its confidence in the prospectivity of the area but also contributes to the broader goal of enhancing Namibia’s energy landscape.
The South African Oil & Gas Alliance invites you to join the SAOGA Namibian Oil, Gas & Energy focused Business Trade Mission from 19 to 24 May 2024. Following on the success of previous trade missions to Mozambique, Namibia and Tanzania, SAOGA’s latest planned mission to Namibia will facilitate introductions with government entities and key stakeholders in the country’s burgeoning oil, gas and energy environments. MORE INFORMATION
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