Qatar Petroleum Farms in to Namibian Exploration Block
Qatar Petroleum (QP) has entered into an agreement with Royal Dutch Shell Plc to farm in to a 45% interest in exploration license PEL 39 in the Orange basin, offshore Namibia. The financial terms of the transaction have not been disclosed.
The transaction marks QP’s second exploration license in Namibia. In August 2019, the company entered into agreements with French major TOTAL SA to acquire participating interests in blocks 2913B and 2912, offshore Namibia.
PEL 39 (comprised of blocks 2913A and 2914B) covers an area of approximately 12,300 sq. km in the Orange basin and is located near the maritime boundary with South Africa in a water depth of around 2,500 m. The license provides for multiple plays targeting the Cretaceous deep-water systems and includes 7,400 sq. km of 3D seismic data acquired in 2019.
Shell, which will hold a reduced 45% operated interest upon completion, continues to compile an inventory of prospects on the license to refine and assess the prospectivity and petroleum systems analysis while integrating the new 3D seismic data in the geological evaluation with a view to drilling a well in early 2021. The other partner in the license is the National Petroleum Corporation of Namibia (NAMCOR), holding the remaining 10%.
“With this second exploration and production sharing agreement in Namibia, we are pleased to expand our exploration footprint in the country, and to further strengthen our presence in the southern Africa region. Working on these promising and prospective blocks with our valued long-term partner, Shell, is another step in our stride towards achieving our international growth strategy,” said His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of QP.
The closing of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals.