Pursuit of Producing Assets
The Upstream Development and Production department’s mandate is premised on the acquisition of international oil producing assets. This is in line with NAMCOR’s strategy of securing long-term revenue.
The company has made substantial progress in its asset acquisition efforts, with the recent participation in the Sonangol P&P divestment process in 2021, where NAMCOR and its partners successfully bid for Blocks 15/06, 23 & 27. On 12 April 2022 NAMCOR and its partners entered into the sales and purchase agreement with Sonangol P&P to purchase a 10% working interest in Block 15/06, 40% working interest in Block 23 (with operatorship), and 35% working interest in Block 27.
The Sonangol assets are being pursued through Sungara Energies, a consortium formed between NAMCOR, Sequa Petroleum and Petrolog Group. Sungara Energies which was successfully incorporated in the UK early this year, serves as Special Purpose Vehicle (SPV) for acquisition of prospective assets.
An independent technical and commercial review of Block 15/06 was conducted by TRACS International Limited to identify projects potentially classified as reserves following the SPE PRMS guidelines for classification of reserves and resources. TRACS review concluded that the 10% working interest in Block 15/06 has equivalent remaining technical recoverable volumes of ca. 55 million barrels of oil as of April 2022, with further net in-place resources in field upsides, discoveries, and prospect pools of ca. 70, 45 and 290 million barrels respectively (unrisked). The review has not identified any potential red flags, technical or commercial, relating to the acquisition of Block 15/06. The finalization of the acquisition of all the blocks is subject to customary conditions and approvals, with completion expected before December 2022.
NAMCOR continue look for further opportunities to acquire stake in oil producing assets in politically stable jurisdictions across the world.
Kudu Gas Project
NAMCOR has successfully farmed out an additional 39% to BW Energy, its partner and operator of the Kudu license. The current project shareholding is as follows:
- BW Energy 95%
- NAMCOR 5% carry with a 5% back in right
The joint venture remains committed to develop the Kudu Gas project and has continued constant engagements with NAMPOWER and other potential gas or electricity off-takers including securing potential markets in South Africa through bilateral agreements.
For more information kindly contact the New Ventures Manager.