As the high stakes Walvis Basin in the Republic of Namibia nears exploration phases, massive capital investments are imperative to make it successful.
There is high anticipation from the deepwater frontier; the kind which is currently driving exploration trends. Tackling seismic surveys and exploratory drilling campaigns will generate the best results when the investment risks get shared amid multiple partners who carry extensive industry expertise.
Risk diversification move
Chevron-subsidiary, Chevron Namibia Exploration II Limited has made a risk diversification move in Namibia by offering QatarEnergy a participating interest in an offshore exploration block.
This gives QatarEnergy a 25% interest in petroleum exploration license 0082 (PEL82), reshuffling the shares at 55% for Chevron as the Operator, while Namcor E&P and Custos Energy retain 10% each.
Comprising blocks 2112B and 2212A, PEL82 covers an area of approximately 11,444 sq kms offshore Namibia, in water depths ranging from 350 to 2,300 meters. The region might require high-impact exploration drilling, and the collaboration between Chevron and QatarEnergy who are longtime global joint-venture partners, can accelerate the process.
Portfolio expansion
The acquisition aligns with QatarEnergy's portfolio expansion interests in Namibia ever since the West African nation has garnered global attention for its offshore oil boom, with oil giants like Shell, TotalEnergies and Galp announcing major discoveries. Working alongside a major like Chevron gives QatarEnergy direct exposure to the unexplored potential of the Walvis Basin.
While the acquisition has been secured and now awaits customary regulatory approvals, Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, the president and CEO of QatarEnergy, said, “We are pleased to further strengthen our relations with Chevron through this agreement, and to expand and diversify our footprint in Namibia. We would like to thank the Namibian authorities for their cooperation and support, and we look forward to working with our partners to progress exploration activities and achieve positive results for the benefit of all stakeholders.”
QatarEnergy's Namibian acquisition comes following previously secured interests in Angola and Egypt.
