Namibia’s government has given the green light to Azule Energy taking a major stake in Rhino Resources’ block in the Orange basin, where the high-profile Sagittarius-1X probe has just spudded. Rhino announced it had started drilling the exploration well in Petroleum Exploration Licence 85 early on Wednesday evening, with details about the successful Azule farm-in emerging just a few hours later.
The BP-Eni joint venture originally unveiled its deal to access PEL 85 in May this year, and has now secured all customary third-party approvals from Namibia's authorities and joint venture parties. With the completion of the transaction, Azule holds, officially, a 42.5% interest in Block 2914A (which is covered by PEL 85), leaving Rhino with a 42.5% operated stake. The other partners are state-owned Namcor on 10% with local player Korres Investments holding 5%.
According to the farm-out agreement, Azule has the option to become operator for the development phase, assuming drilling successes. Azule's entry into Namibia marks the first time that the joint venture has worked beyond its home turf in Angola. Commenting on the deal, Azule chief executive Adriano Mongini said: “Azule is fully committed to leverage on our experience to safely and reliably unlock the hydrocarbons potential of the licence, and delivering value for all Namibian stakeholders.” Rhino chief executive Travis Smithard added that this “transformative and strategic farmout transaction…represents another key milestone in Rhino’s organic growth strategy which sees the company leveraging our exploration expertise in conjunction with the fast-track development capabilities of Azule to enhance value creation for all stakeholders.”
PCL Price at posting:
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