ExxonMobil has signed an agreement with the government of Namibia and the National Petroleum Corporation of Namibia (NAMCOR) to increase its exploration acreage by nearly seven million net acres in Namibia.
ExxonMobil said that it has signed the agreement for blocks 1710 and 1810, and farm-in agreements with NAMCOR for blocks 1711 and 1811A.
The blocks company has added to its portfolio are extended from the shoreline to approximately 215kms offshore Namibia in water depths of approximately 4,000m.
The company said that it is planning to start the exploration activities in 2019, including acquisition of seismic data and analysis.
ExxonMobil is expected to operate blocks 1710 and 1810 and hold a 90% interest, while NAMCOR is expected to keep a 10% interest and 5% of interest is assigned to a local Namibian company.
ExxonMobil exploration and new ventures senior vice president Mike Cousins said: “These agreements provide ExxonMobil with an opportunity to explore for hydrocarbons using advanced technology in the frontier Namibe basin. We will employ our significant upstream experience and technological expertise and work in close collaboration with NAMCOR in exploring these blocks.”
Blocks 1711 and 1811A will be operated by ExxonMobil with a 85% stake, with NAMCOR retaining a 15% interest.
ExxonMobil said that it also holds a 40% interest in the PEL 82 license offshore Namibia, including approximately 2.8 million gross acres.
In August 2018, the company signed an agreement with Namibian oil exploration and production company Azinam to acquire 30% stake in Petroleum Exploration Licence (PEL) 44, offshore Namibia.
The PEL 44 is located in the Walvis Basin and covers an area of 5,722km2, in water depths ranging from less than 300m to over 2,500m.
Under the terms of the transaction, the company’s affiliate ExxonMobil Namibia was to acquire the stake in PEL 44 from Seacrest Capital Group-backed Namibian explorer for undisclosed amount.
Following the completion of acquisition, Azinam was expected to have 12.5% interest in the PEL 44 while Maurel and Prom, the license operator, would take 42.5% equity interest. In addition, NAMCOR, Livingstone Mining, and Frontier Minerals were expected to have 8%, 4% and 3% stakes respectively.