Petroleum exploration license offshore Namibia granted second extension
Namibia’s Ministry of Mines and Energy has granted a second one-year extension for the Petroleum Exploration License 87 (PEL 87) located in the Orange Basin.
Canada-based Sintana Energy reported on 21 December that Namibia’s Minister of Mines and Energy had granted a second one-year extension to the current, first four-year Initial Exploration Period associated with PEL 87, which will now expire in January 2024.
The extension will be used to conduct an extensive 3D seismic survey, among other things, and three additional periods totaling six years are available after the current period, with further possible extensions.
The Minister has waived an obligatory relinquishment of the license area of PEL 87, preserving an area of 10,970 km2, according to Sintana.
Pancontinental Orange is the operator and owns a 75 per cent interest in PEL 87, while Sintana maintains a 7.4 per cent indirect, carried interest and National Petroleum Corporation of Namibia (Namcor) owns 10 per cent.
Sintana states that PEL 87 includes the 2,400 km2 Saturn turbidite complex, which has similar geologic characteristics and is on-trend with TotalEnergies’ Venus oil discovery, made in February.
The firm added that the working interest partners continue to have discussions with potential farm-out partners. Potential farm-out announcements on PEL 87, as well as on PEL 83 are expected next year.
The Ministry of Mines and Energy in Namibia approved an extension to the First Renewal Exploration Period for PEL 83 in June, providing for an increase to the related work program, which will support the drilling of an exploration well currently expected in 2023.
Sintana, through its indirect investment in Custos Energy, maintains a 4.9 per cent carried interest in the blocks 2813A and 2814B, operated through PEL 83. Sintana also owns indirect interest in the adjacent blocks operated through PEL 90.