Namibia

 

Regional Development:

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 – January 2018, Namibia has generated significant regional activity with multiple majors and large independents securing acreage. This includes BP, Total, Shell,  Tullow, Galp Energia, Oranto, Lek Oil and Maurel et Prom.

Exploration activity came to a halt after the oil price crash of 2014, however encouraged by the results of these initial wells, the industry is now showing renewed interest. Over the past  six months from October 2017 to March 2018,  Exxon, Total, Tullow, ONGC Videsh, Canadian based Africa Energy Corporation and BW Offshore have all farmed-in to projects offshore Namibia and over the next twelve months at least four deep-water wells are expected to be drilled. Of direct relevance in supporting the value proposition offered by Nabirm’s Block 2113A , Exxon farmed-in to the acreage immediately West in January 2018 and, over the next 12 months, Exxon, Shell, Chariot and Tullow oil are all reported to be drilling wells in adjacent acreages.

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

 

Nabirm operates PEL 0058 over Block 2113A in the Walvis Basin: click on the 2017 license map below.

Lic_Map_26 June 2014

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. There have been, and are ongoing, 3D seismic surveys, including those by Tullow and Chariot; we expect a new phase of offshore drilling to begin in 2017/18. New multi-client 2D seismic has provided fresh insights into the offshore geology and we believe that the time is right to build a large acreage position to allow a full regional analysis to pinpoint the most prospective areas.

The interests in the Block 2113A PEL 58 are:

Nabirm                                             90% (Operator)
NAMCOR                                         10%