2nd Farm-in for Namibia Offshore Licence
Australia-listed Pancontinental Oil & Gas, which has a 30% interest in exploration licence PEL 37 offshore northern Namibia, has brought in a partner to co-own that interest – which is mainly targeting oil.
Pancon said September 14 it has now agreed to sell a 33.33% interest in a company owning that PEL 37 interest to Vancouver-based Africa Energy Corp (AEC) for US$7.7mn (A$10mn) in two stages. It's the second such farm-in on the licence in recent months. Pancon's website says that operator Tullow is expected to drill an exploration well on the licence next year.
This March, AEC backed out of a deal to buy a direct 10% interest in PEL 037 from Pancon. Remaining interests in the 17,295km2 PEL 37 licence are UK independent Tullow Oil 35%, Indian ONGC Videsh’s 30% farm-in announced in July, and Namibia-based investor Paragon 5%.
AEC has a 90% operating interest in Block 2B offshore South Africa where some oil was found in 1988 by that country’s then state explorer Soekor; that 2B block is close to the offshore border with southern Namibia. Also Pancon says that Total farmed into an offshore southern Namibia block last month.
Singapore shipowner BW said February 2017 it will take a final investment decision in Q4 on whether to develop Namibia’s offshore Kudu gas field, offshore southern Namibia. The project would involve using gas to fuel a power plant that might export electricity to South Africa.
Offshore Namibia (Map credit: Pancontinental)
Mark Smedley