The National Petroleum Corporation of Namibia (NAMCOR) has partnered with Reconnaissance Energy Africa (ReconAfrica) to assess and unlock the resource potential in the Kavango Sedimentary Basin, north-east Namibia.
The two parties have signed a related joint operating agreement (JOA), agreeing to jointly undertake a petroleum exploration programme in the Kavango East and Kavango West regions.
ReconAfrica will be responsible for covering the full costs of the exploration activity to commerciality in the two regions.
The JOA follows a petroleum exploration agreement reached by the two companies with the Government of the Republic of Namibia in 2015. Under the agreement, the firms acquired Petroleum Licence No 73.
NAMCOR managing director Immanuel Mulunga said: “We are delighted to have finalised the negotiations and signature of a JOA with ReconAfrica for Petroleum Exploration Licence No 73.
“This agreement will govern the relationship between NAMCOR and ReconAfrica, and we will collectively advance the search for oil in the Kavango Sedimentary Basin in accordance with the Laws of Namibia.
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“We understand the hydrocarbon potential of the Kavango Basin; hence collaborating with an international company with both technical and financial capabilities such as ReconAfrica will unlock the discovery of commercially viable hydrocarbon reserves and thereby enhance economic development in the country.”
ReconAfrica has already completed testing of two wells in the Namibian petroleum licence area and the result showed evidence of a working conventional petroleum basin.
This year, the firm will drill two additional wells to determine the commercial viability of petroleum reservoir at the Kavango Sedimentary Basin.
In the event of Kavango Sedimentary Basin being validated as commercially viable, ReconAfrica and the Namibian state oil company intend to activate a 25-year production licence as part of the petroleum agreement with the Namibian Government.