Once largely ignored by the global energy industry, Namibia now finds itself in a position where more and more oil companies are looking to take advantage of its untapped resources
In a development that is set to place Namibia on the world map of oil-rich nations, an estimated 11bn barrels of oil reserves has been discovered off the southern coast. Such estimates have not only created huge expectations in Namibia but have whet companies' appetite despite the lack of exploration in the country. BP, Petrobras may soon be joined by Shell, Repsol and South Africa's Sasol as existing operators look to farm out larges swathes of acreage, well-placed industry sources told Platts at the Africa Oil Week conference in Cape Town.
AIM-listed Chariot Oil & Gas has hailed Namibia as "one of the last frontiers for oil and gas exploration" and hopes to unlock what it believes is huge potential.
Chariot's CEO Paul Welch said that his company is "actively" seeking more partners to farm in to its licences in northern Namibia.
The company has identified the drilling locations for a four to five well programme planned through until the end of 2013 which will span its northern licenses as well as its Southern acreage, where it is already partnered with Petrobras and BP.
Arcadia deal
Arcadia is also expected to soon announce a farm-in deal for its licence 0010, which it holds with UK-listed Tower Resources. In addition to Petrobras, another Brazilian company, HRT Oil and Gas, is also looking to make a big splash offshore Namibia. The company has raised $1.3bn on the Brazilian stock market, with $300mn earmarked for oil and gas exploration in Namibia. Studies carried out by HRT have already demonstrated the existence of at least two active petroleum systems, and the company is set to drill a series of three to four wells between 2012 and 2013.
Analysts say it makes sense for companies with experience of Brazil's offshore to be looking at Namibia. The country's offshore basins have characteristics very similar to the Campos and Santos basins in Brazil, as do Angola's just to the north.
AIM-listed Serica Oil & Gas is the latest company to join the exploration scene. The company in a brief announcement Wednesday said it was in advanced discussions for "significant" licence areas in Namibia, adding that agreements were in the process of being finalised.