Angola-based Azule Energy, an independent joint venture of BP and Eni, has closed its first international deal with a farm-in agreement with Rhino Resources Namibia.
The landmark agreement will grant Azule a 42.5 percent interest in Block 2914A in petroleum exploration license PEL85, located offshore Namibia, the company said in a news release. The Namibian Orange basin has had the location of several major oil discoveries since 2022.
According to the release, the current contractor group of PEL85 consists of Rhino as operator with an 85 percent stake, National Petroleum Corporation of Namibia (NAMCOR) with 10 percent and local company Korres Investments Pty Ltd with five percent.
The agreement provides Azule Energy with an option to become the operator of PEL85. The transaction is subject to customary third-party approvals from the Namibian authorities and joint venture parties, the company noted.
The first well is expected to spud by the end of 2024. The plan is to drill two high-impact exploration wells as part of a work program in the area, according to the release.
“Our entry into offshore Namibia represents a significant milestone for Azule. We are excited to enter this highly prospective hydrocarbon region and to participate in the unlocking of Namibia’s oil and gas potential,” Azule CEO Adriano Mongini said. “This venture aligns with Azule Energy’s vision of becoming a regional leader in energy exploration and underscores its dedication to safe and reliable resource development”.
“The signing of this agreement sets the foundations for a new strategic partnership between Rhino and Azule,” Rhino Resources CEO Travis Smithard said. “This partnership is based upon a mutual drive to accelerate exploration on the block with the goal of developing the hydrocarbon potential in the shortest timeframes possible. We believe that Azule’s unique capabilities of rapid deployment of technical and financial resources will complement our objectives of delivering value creation, for the benefit of all Namibian stakeholders”.
Azule Energy was established in August 2022, combining the BP and Eni Angolan businesses. It describes itself as a leading upstream player, with exploration and production activities in 20 licensed blocks. Azule aims to support Angola in its role as a global liquefied natural gas (LNG) exporter, as well as develop new opportunities in renewables with a new solar business, according to the company’s website.
Rhino Resources Namibia Ltd is a privately-owned exploration company focused on delivering real low-cost energy solutions to the African continent. The company has been exploring in Namibia for over a decade.
In an earlier report, Toronto-based Sintana Energy Inc. acquired up to 67 percent of the issued and outstanding shares of Giraffe Energy Investments (Pty) Ltd., which owns a 33 percent interest in Petroleum Exploration License 79 (PEL 79) governing blocks 2815 and 2915 in Namibia’s Orange Basin.
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