Sintana Energy has announce that Trago Energy (Pty) Limited, a Namibian affiliate of the Company, has completed a transaction with Chevron Namibia Exploration Limited, a wholly-owned subsidiary of Chevron, in respect of its interest in Petroleum Exploration License 90 located in the Orange Basin in Namibia.
The deal is estimated at close to N$1.7 billion (about US$100 million), multiple sources have said.
Trago will retain a 10% interest in PEL 90 ON Block 2813B. Chevron will carry Trago through initial exploration activities including 3D seismic and drilling of the first exploration well. Post the carry period, Trago will be responsible with approved expenses associated with its interest. Additional terms of the transaction have not been publicly disclosed.
“We are very happy to partner with Chevron in the Orange Basin,” said Knowledge Katti, Chairman and CEO of Trago and a Director of Sintana. “This transaction in our emerging, globally significant deepwater province brings partnership with an aligned, highly experienced and committed deep water drilling operator.
“This partnership demonstrates the continuing emergence of Namibia as an important hydrocarbon province, and the timeliness of our entry in March of this year,” said Robert Bose, President and Director of Sintana. “We look forward to the near-term exploration activity on PEL 90.”
The acquisition will mark the re-entrance of Chevron in Namibia after 40 years of market absence. Having made the first discovery in Namibia with Kudu 9A, in 1974, 24 months after the country’s first licensing round, the development signals Chevron’s strategy to enter Namibia’s offshore oil and gas rush alongside other majors including TotalEnergies and ExxonMobil that are exploring and developing massive energy projects.
Sintana Energy is engaged in petroleum and natural gas exploration and development activities in Colombia’s Magdalena Basin and five large, highly prospective, onshore and offshore petroleum exploration licenses in Namibia. Sintana’s exploration strategy is to acquire, explore, develop and produce superior quality assets with substantial reserves potential.