Exxon Enters Namibian Offshore
ExxonMobil has farmed into PEL 44 offshore Namibia with a 30% interest, an existing partner in the petroleum exploration licence said August 14.
Azinam, the Namibian exploration firm backed by independent energy investor Seacrest Capital Group, said it has entered into an agreement with the US supermajor, and will farm down its current 42.5% stake to 12.5%. "I'm thrilled that ExxonMobil is joining Azinam as partner in the PEL 44 licence. This marks yet another milestone in our activity offshore Namibia," said Azinam chairman, Erik Tiller.
France-based Maurel & Prom, now controlled by Indonesian state Pertamina, is to retain its current 42.5% operating stake, while Namibian state Namcor, and privately held Livingstone Mining and Frontier Minerals will retain their carried interests of 8%, 4% and 3% respectively. The acquisition is subject to government approval and other conditions.
PEL 44 is located in the Walvis Basin and covers 5,722km2 in water depths ranging from less than 300 metres to over 2,500 metres. In 2016, Azinam acquired a 2,000km² 3D seismic survey. Following interpretation, Azinam acquired an additional 1,160km² of new data, processing of which is ongoing.
Elsewhere Azinam notes that Namibian activity is stepping up, with India's ONGC recently farming into PEL 37 where operator Tullow Oil plans to spud a well this September, while UK-based Chariot Oil & Gas which operates PEL 71, where Azinam holds a 20% stake, recently secured the Ocean Rig Poseidon to drill Prospect S in Q4 2018. Namibian exploration effort is believed mainly to be targeted at oil, not gas.
Exxon though has interests in the region that are more gas-directed, notably a 25% interest in Area 4 offshore Mozambique which is being developed for eventual Exxon-run LNG projects, as well as a less advanced 40% operating stake in an offshore South Africa block.
In UK news relating to another Seacrest subsidiary Azinor Catalyst, Faroe Petroleum said August 14 it has farmed into Azinor's Agar Plantain exploration and appraisal well in the UK North sea. Faroe said Azinor's mid-case resource estimate for the combined prospects is 60mn barrels of oil equivalent, with an upside case of 98mn boe - mainly oil. Faroe said its equity interest in this well is 25% to be funded through existing cash resources, and through the same transaction it will also become a 12.5% equity interest holder in the wider UK P1763 Licence (Apache 50% and operator, Cairn 25.0%, Azinor Catalyst 12.5%).