Since the discovery of substantial oil reserves by TotalEnergies SE and Shell Plc in 2022, Namibia has garnered significant attention within the global oil market.
- Namibia has attracted global oil industry attention after significant oil discoveries by TotalEnergies and Shell in 2022.
- BP has recently secured a deal to acquire and operate a 60% stake in three exploration licenses in Namibia’s Walvis Basin.
- BP has previously discovered oil in Namibia via a joint venture with Eni and this marks its first operatorship of a Namibian license, pending government approval.
- Other major energy deals include Petrobras acquiring a 42.5% stake in another offshore block, with additional partners holding minority stakes.
This has culminated in several energy deals, including British Petroleum’s (BP) recent exploration deal with the Southern African country.
Recent reports indicate that Namibia has agreed to sell stakes in three exploration licenses to BP, the largest oil company from the UK, after Shell.
Per the agreement, the British company will own and operate 60% of the blocks in the Walvis Basin, north of TotalEnergies SE and Shell Plc’s finds.
As reported by Bloomberg, BP had already discovered oil in Namibia through a joint venture with Eni SpA.
The company, via a statement, noted that the deal is subject to government approval and will mark the first time it has taken operatorship at a Namibian license.
Namibia has emerged as one of Africa’s most closely watched energy frontiers, following significant discoveries by TotalEnergies SE and Shell Plc in 2022.
The country is believed to have reserves of up to 2.6 billion barrels, with exploration hotspots in the Orange, Luderitz, Kavango, and Walvis basins.
In August last year, it was reported that TotalEnergies was planning a new offshore drilling exploration in South Africa’s Deep Western Orange Basin, which extends into the Namibian seas, where significant finds have been recorded.
At the time, SLR Consulting disclosed that TotalEnergies’ South African subsidiary proposed the exploration of up to seven wells, situated approximately 211 kilometers (131 miles) off the coast of Saldanha Bay.
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In February, Brazil’s state-run oil company Petrobras said it had acquired a 42.5% stake in an offshore oil exploration block in Namibia.
As part of the deal, Eight and Namcor Exploration and Production will hold 5% and 10% stakes in the block, respectively, while Maravilla Oil & Gas is selling its interest, Petrobras said.
However, the country stated that it had not received any notification of the planned acquisition by TotalEnergies and Brazil’s Petrobras.
Although Namibia currently lacks active oil production, projections suggest that the country may achieve commercial output levels by the year 2030.
