Namibia's NAMCOR Signs Deal with Chevron to Develop Offshore Block

Namibia's national oil company (NAMCOR) has signed a development deal with Chevron (CVX.N), opens new tab that will see the U.S. oil major take an 80% operating working interest in an offshore block in the Walvis Basin, NAMCOR said on Monday.

Oil companies are flocking to Namibia, excited by the southern African country's plans to open up a major new frontier basin, with recent offshore finds ranking among the largest this century.

The farm-out agreement with Chevron Namibia Exploration Limited (CNEL) will see the National Petroleum Corporation of Namibia (NAMCOR) and local company Custos Energy each retain a 10% interest in petroleum exploration license 82.

"Chevron looks forward to working with our partners to continue exploration activities and support Namibia’s energy sector," a spokesperson said.

In addition to this acquisition, Chevron Namibia Exploration Ltd is the operator of the PEL 90, an offshore deepwater block located in the prolific Orange Basin where Galp (GALP.LS), opens new tab also made a large discovery earlier this month.

The Chevron spokesperson confirmed it planned to drill an exploration well in the block in the fourth quarter of this year.NAMCOR's interim managing director, Ebson Uanguta, welcomed the deal."Our partnership with CNEL and Custos Energy represents a shared vision for the future of Namibia's energy landscape," Uanguta said in a statement.

Namibia, which has yet to produce any oil or gas, has become an exploration hotspot after offshore discoveries by TotalEnergies (TTEF.PA), opens new tab and Shell (SHEL.L), opens new tab, and is planning for its first output by 2030.