Nabirm’s focus on exploration efforts in Namibia is not based solely on its highly prospective geology, but also for the favourable political and business climate. NAMIBIA can be characterized as follows:
- Stable democracy
- Resource economy
- Low corruption – rank: 58/176
- BBB risk rating
- 2.3 million people
- Gross Domestic Product (GDP) of US$12.2 (2010)
- 5% royalty + 35% corporate tax
- Literacy rate of 88.5%
- Only 16 wells drilled in <20 years
- Billions of barrels of oil and gas resources
Namibia Upstream Developments 2022
Namibia has been an active oil and gas exploration area since the 1960s. Initial exploration efforts were driven by large multinational companies and the first hydrocarbon discovery was the Kudu Gas Field by Chevron in 1974 (Kudu Field has proven resource of 1.45 TCF). Between 2013 – 2020, Namibia has generated significant regional activity with multiple majors and large independents securing acreage. This includes Exxon, Total, Shell, Tullow, Galp Energia, Oranto, Lek Oil and Maurel et Prom. Namibia, a new frontier and home to a basin that rivals Eagle Ford in size and hopes to rival it in potential.The Kavango Basin, a 6.3-million-acre basin with a 12-billion-barrel original oil in place potential, and the entire basin was recently acquired by an ambitious Canadian explorer called Reconnaissance Energy Africa Ltd (TSXV: RECO, OTC: RECAF)
Reconnaissance Energy Africa is hoping to put Namibia on the map onshore, while supermajors such as Exxon, Shell and Total SA are hoping to bring Namibia fame offshore. A few years ago, during the shale boom, Recon Africa went looking for shale in Namibia and discovered a deep giant basin, the Kavango Basin. The Kavango Basin is an extension of the Permian Karoo shales of South Africa, Botswana and Namibia. It’s never seen a drill bit, yet it could become an analogue to one of the world’s largest shale discoveries in South Africa. The ultra-deep basin simulates in many ways the kind of environment you see in Eagle Ford:
- 6.3 million total acres to Eagle Ford’s 6.7 million acres in geographic size
- Potential for an estimated 12 billion barrels OOIP (Original Oil in Place) and 119 TCF OGIP(Original Gas in Place), to be determined whether it’s actually there and if so, technically recoverable. If it were, that’s significantly higher than Eagle Ford’s 2.4 billion OOIP and 50 TCF OGIP.
Exxon (NYSE:XOM) recently acquired additional 7 million net acres from the Namibian government for a block extending from the shoreline to about 135 miles offshore in water depths up to 13,000 feet, with exploration activities to begin by the end of this year. What Exxon’s banking on is that Namibia, which once fit together with Brazil, shares the same geology as Brazil’s pre-salt bonanza basins, Santos and Campos, which have already proved enormously resource-rich, according to Deloitte.
In 2021, French oil giant Total SA (NYSE:TOT) launched a three-well drilling campaign that included one of the deepest wells ever drilled in Africa–two wells in Angola and one in Namibia. Qatar Petroleum farmed into Total’s Namibia blocks. Shell (NYSE:RDS.S) also delineated and drilled a deep-water wildcat prospect offshore Namibia that spudded in 2021. Shell of course is a veteran in the African oil and gas game. The company began drilling in the region in the 1950s, and now has assets in over 20 countries across the continent.
Shell (SHEL) hit oil in Namibia during January 2022, and by mid February Upstream sources
Namibia remains an anomaly on the prolific Atlantic margin of Africa, with an extraordinary low drilling density. There are still only 15 offshore exploration wells along its 1600 km coastline despite the geology sharing several characteristics with other prolific provinces of the South Atlantic. Industry farm in activity has increased despite the downturn in prices. New information from dry wells drilled in 2018 has provided fresh insights into the regional geology and we believe that the time is right to continue Nabirm’s work in pinpointing the most prospective areas within Block 2113A.
Nabirm operates PEL 0058 over Block 2113A in the Walvis Basin License map
The interests in the Block 2113A PEL 58 are:
- NABIRM 90% (Operator)
- NAMCOR 10%