The Ministry of Mines and Energy, Isak Katali has announced that international oil company Shell Exploration and Production has joined the race to discover commercially viable oil sourced off-shore Namibia. He expressed government hopes that this is a start of the influx of other recognised international oil companies, “to come and participate in the search for oil and gas in Namibia,” he said.
Shell has entered into a petroleum assignment agreement with Signet Petroleum Limited in December, by which it bought 90% participation interest in Licence 0039 in the Orange Basin. Namcor will retain its 10% carried interest in the licence. The deal sees Shell farming into blocks 2913A and 2913B, becoming the new operator to continue with the exploration work programme stipulated in the government agreement relating to the blocks.
According to Katali, Shell’s interest can be attributed to offshore exploration efforts over the last two years, particularly by Chariot Oil and Gas and also HRT. “The drilling campaign by HRT in the Wingat-1 well last year obtained the first oil sample, thus unequivocally establishing offshore Namibia as an oil province and breaking the decade long paradigm that only gas and condensate will ever be discovered here. This oil sample, combined with the source rock samples and other data obtained in HRT’s wells, provides positive proof of the oil potential for both the Orange and Walvis Basins, thus de-risking the oil exploration for all current and future explorers,” said the mini-ster.
“The public should understand that several of today’s leading offshore oil provinces like Nigeria, Angola, and Norway had a large number of dry wells drilled prior to the first commercial oil discovery. Frontier exploration provinces such as Namibia require patience, dedication, as well as exploration know-how, and with the results of recent exploration campaign Namibia’s oil future looks bright,” he said.
Immediate benefits from Shell’s new exploration activity may include both additional expenditure and capital resources to the nation, according to Katali.
Shell has entered into a petroleum assignment agreement with Signet Petroleum Limited in December, by which it bought 90% participation interest in Licence 0039 in the Orange Basin. Namcor will retain its 10% carried interest in the licence. The deal sees Shell farming into blocks 2913A and 2913B, becoming the new operator to continue with the exploration work programme stipulated in the government agreement relating to the blocks.
According to Katali, Shell’s interest can be attributed to offshore exploration efforts over the last two years, particularly by Chariot Oil and Gas and also HRT. “The drilling campaign by HRT in the Wingat-1 well last year obtained the first oil sample, thus unequivocally establishing offshore Namibia as an oil province and breaking the decade long paradigm that only gas and condensate will ever be discovered here. This oil sample, combined with the source rock samples and other data obtained in HRT’s wells, provides positive proof of the oil potential for both the Orange and Walvis Basins, thus de-risking the oil exploration for all current and future explorers,” said the mini-ster.
“The public should understand that several of today’s leading offshore oil provinces like Nigeria, Angola, and Norway had a large number of dry wells drilled prior to the first commercial oil discovery. Frontier exploration provinces such as Namibia require patience, dedication, as well as exploration know-how, and with the results of recent exploration campaign Namibia’s oil future looks bright,” he said.
Immediate benefits from Shell’s new exploration activity may include both additional expenditure and capital resources to the nation, according to Katali.
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