Sintana Energy has secured exclusive rights to negotiate a potential investment in a large offshore exploration block in Namibia’s Walvis Basin, expanding its presence in one of the world’s most closely watched emerging oil regions.
The company said it has signed a letter of intent that grants exclusivity until 30 April 2026 to negotiate an indirect interest in Petroleum Exploration Licence 37. The license covers about 17,295 square kilometers in shallow offshore waters off Namibia’s coast.
PEL 37 sits directly north of PEL 82, where Chevron plans to drill an exploration well. Custos Energy, a Sintana affiliate, already holds a carried interest in PEL 82, which has attracted interest following recent offshore discoveries in Namibia.
As part of the agreement, Sintana will pay a one million dollar deposit to secure the exclusivity period. One third of the payment will be kept if the company decides not to move forward.
If completed, the transaction would involve Sintana contributing funds toward license work commitments in exchange for a shareholding in Paragon Oil and Gas, the Namibian company that owns and operates PEL 37.
The license area includes several large geological structures, including deepwater fan systems above an Aptian-age source rock that is known to generate oil.
Chief executive Robert Bose said the letter of intent gives Sintana low-cost access to a potential interest in PEL 37. He noted that an investment could add flexibility alongside activity already underway across the company’s existing assets.
Sintana said it will now carry out technical, legal and commercial reviews of the licence and its operator before deciding whether to proceed. The company expects to provide updates as the process continues.
source: www.proactiveinvestors.co.uk
African Energy Council