Azule Energy Inks Farm-In Deal with Rhino Resources, Underscoring the Prospectivity of the Orange Basin
The transaction showcases the high level of opportunity that lies in the Namibian Orange Basin – one of the world’s most promising offshore exploration prospects
LUANDA, Angola, May 3, 2024/ — International energy company Azule Energy has officially farmed-in to Namibia’s offshore Block 2914A with the signing of an agreement with exploration company Rhino Resources Namibia. The transaction marks Azule’s entry into the country as well as its first international deal. Representing the voice of the African energy sector, the African Energy Chamber (AEC) (http://www.EnergyChamber.org) stands in support of Azule Energy’s venture into the Orange Basin, recognizing the value of the transaction in unlocking the full potential of the country’s oil and gas resources. The deal is a testament to the prospectivity of the basin as well as the high level of international interest in Namibia’s offshore oil and gas opportunities.
Under the terms of the agreement, Azule Energy has secured a 42.5% interest in Block 2914A – located in PEL 85. Following the completion of the acquisition, Azule Energy plans to drill two high-impact exploration wells as part of a work program in the area, with the initiation of the first well anticipated as early as Q4, 2024. These wells are anticipated to play a crucial role in unlocking the hydrocarbon potential of the Orange Basin, thereby supporting Namibia’s energy security and economic growth.
Additionally, the agreement provides Azule Energy with an option to become the operator of PEL 85, showcasing the company’s commitment to responsible resource management and operational excellence. The current contractor group consists of Rhino Resources Namibia as the operator with an 85% interest, Namibia’s national oil company NAMCOR with a 10% interest and indigenous company Korres Investments with a 5% interest. This consortium represents a diverse range of expertise and resources, ensuring a well-rounded approach to exploration and development activities in the Orange Basin.
“It is an exciting moment for exploration in Namibia. This farm in further confirms Namibia as one of the world’s most prospective, underexplored hotspots, with billions of barrels of oil yet to be found. We still believe that there will be many more similar farm-in deals by companies holding exploration assets in this emerging country,” stated NJ Ayuk, the Executive Chairman of the AEC. “The Chamber commends Azule Energy and Rhino Resources Namibia for their vision and commitment and look forward to supporting their efforts as they work to unlock the full potential of Namibia’s offshore resources”
The Orange Basin continues to reveal substantial deposits of untapped oil and gas. The discovery of light oil in the Enigma-1X well – located in PEL 39 – by energy major Shell marked the latest addition to Namibia’s string of sizeable oil discoveries. The discovery followed the Venus-1X, Graff 1-X, Jonker-1X, La Rona-1X, Lesedi-1X, Mopane-1X, and Mopane-2X finds, showcasing the immense potential lying within the basin. With each find, Namibia inches closer to harnessing these opportunities for commercialization. As the government progresses towards a strategic plan to capitalize on these prospects, it aims to streamline regulatory frameworks, attract further investment and foster sustainable delopment in the energy sector.
In this context, Azule Energy’s Farm-In Agreement assumes greater significance, as it underscores the company’s commitment to exploring and developing the region’s hydrocarbon resources. By participating in the exploration activities in Namibia’s Orange Basin, Azule Energy not only demonstrates its confidence in the prospectivity of the area but also contributes to the broader goal of enhancing Namibia’s energy landscape.
Distributed by APO Group on behalf of African Energy Chamber.
SOURCE
African Energy Chamber