Rhino Resources Namibia Ltd. has received approval from Namibia’s Ministry of Environment, Forestry, and Tourism for an Environmental Clearance Certificate (ECC), permitting the company to drill 10 exploration and appraisal wells off the southern coast.
The drilling campaign, which could inject N$1.8 billion (US$94 million) into the local economy, will take place in License Block 2914A and is expected to commence in the fourth quarter of 2024.
Related exploration activities include vertical seismic profiling (VSP), well testing, and well abandonment.
The project, according to documents seen by M&E, is expected to inject approximately N$70 million (US$3.75 million) per month into the local economies of Lüderitz, Walvis Bay, and other areas where contractors will be based. . This local expenditure will encompass a variety of services, including hotels, accommodation, logistics, and fuel costs, thus fostering substantial economic benefits for these communities. .
“Rhino estimates a local spending of US$3.75 million per month during the exploration well drilling, totaling N$562 million (US$30 million) for the first campaign of three wells,” documents show.
If the second campaign of seven wells proceeds, an additional N$1.2 billion (US$64 million) could be injected, but ultimately depends on the success of the first drilling campaign.
This comes as Rhino has awarded a Namibian deepwater integrated multi-well construction contract to Halliburton.
Under the agreement, Halliburton will provide complete solutions to construct exploration and appraisal wells, along with testing services.
Halliburton will also extend its country operation facilities to support all product service lines from Namibia to enhance collaboration and maximize asset value for Rhino Resources and Namibian customers.
According to the company, the energy service giant will begin work on the wells in the fourth quarter of 2024.
With more than a decade of exploration in Namibia, Rhino Resources holds operatorship of Block 2914A (PEL 85).
The block, located in the shallower portion of the Orange Basin, is strategically located less than 20 km from the nearest discovery and amidst multiple Namibian discoveries made over the last two years.
The block’s proximity to other international operators further underscores its strategic relevance.
In May, Azule Energy, a BP and Eni joint venture, made its first entry into Namibia and the international market by signing a strategic farm-in agreement with Rhino Resources in the offshore Orange Basin.
