Kapana 1-X exploration well located on Block 2813B under PEL 90. (Image source: Sintana Energy)

Chevron has reported to have not found commercial hydrocarbons from the Kapana 1-X exploration well located on Block 2813B under Petroleum Exploration License 90 (PEL 90)

This comes after Shell's write down on PEL39. 

Operated by Chevron-subsidiary Harmattan Energy Limited, PEL 90 also includes Custos Energy-subsidiary Trago Energy with a 10% interest. 

Valuable geologic insights

Chevron, however, has acknowledged the data acquired from exploration operations as hopeful in terms of future programme on PEL 90. “The geologic insights and improved confidence in the future programme on PEL 90 from these operations provides strong support for continued progress and value in our portfolio in Namibia’s Orange Basin,” said Knowledge Katti, chairman and CEO of Custos. 

“We look forward to the many opportunities ahead to further unveil the quality of our unmatched position in the heart of the Orange Basin including the future activity on PEL 90 and the ongoing activity on PEL 83”. added Robert Bose, CEO of Sintana Energy, which enjoys a 49% indirect interest in Custos Energy.

The Mopane 1X well testing operations on PEL83 showed significant oil columns containing light oil in high-quality reservoir sands at two different levels: AVO-1 and AVO-2.

The company has completed major acquisitions. (Image source: Adobe Stock)

Trident Energy has completed the acquisition of the entire issued share capital of Chevron Overseas (Congo) Limited, as well as an additional working interest in the Nkossa and Nsoko II fields from TotalEnergies, resulting in an 85% working interest in the Nkossa and Nsoko II fields, and a 15.75% working interest in the Lianzi field

The company will become the operator of these fields. In addition, Trident Energy has acquired a 21.5% working interest in the Moho–Bilondo field, operated by TotalEnergies. The acquisition, which was announced in April 2024, is expected to add c.30,000 bopd. It is a significant deal for Trident Energy which has proven expertise in extending field life and unlocking production from mid-life assets as demonstrated by their takeovers in Brazil and Equatorial Guinea.

Jean-Michel Jacoulot, Chief Executive of Trident Energy ML said, “We are extremely pleased to have completed the acquisition which marks a new chapter in our history. We are excited to enter the Republic of Congo, take over the operations and deliver the full potential of these assets. We look forward to working with TotalEnergies Congo, the SNPC and the Congolese Government to generate further value to the assets. We would like to take the opportunity to thank the Ministry of Hydrocarbons, and the Government for their support on this transaction”.

Shell CEO says that Namibia's acreage was 'very challenging'. (Image source: Adobe Stock)

The much anticipated petroleum exploration license-PEL39 offshore Namibia turned out to be a disappointment for Shell, as the company announced the discovery a write down of approximately US$400mn, reported Reuters 

Speaking about the discovery, the British oil major is reported to have said that the resources from the block 'cannot currently be confirmed for commercial development'. According to Shell CEO, Wael Sawan, Namibia's acreage was 'very challenging', with lower permeability of the rock making exploration difficult. The company is said to have faced wide ranging challenges in the technical and geological fronts, topped by high natural gas presence. Experts believe that having to deal with gas presence even before oil could be produced is no mean feat and requires costly engineering solutions. High gas presence at the beginning of production means once it fizzles out, reservoir pressure sees a sharp decline, rendering oil production a dicey job. 

'Not a setback'

'While we recognise that extracting the discovered resources presents challenges, the extensive data collected shows that there remain opportunities. Together with our partners, we are continuing to explore potential commercial pathways to development, while actively looking for further exploration opportunities in Namibia', read a statement from the company.

This comes as a discord as PEL39 has been very giving since 2022, when Shell and its partners, QatarEnergy and the National Petroleum Corporation of Namibia-NAMCOR made their first discovery in the region. Several others have followed as Shell drilled nine wells in the licence over the last three years. 

Growing global interests from exploration and production companies such as QatarEnergy, Chevron and Galp, to name a few, have set off a whole oil & gas ecosystem in the region, with tech giants Halliburton and Baker Hughes opening facilities, and high stakes logistics contracts coming into effect. 

"It is not a setback. We are positive that the remaining potential of PEL39 and other exploration campaigns will translate into commercial developments," said Namibia's Ministry of Mines and Energy in a statement on Shell's decision. 

The company saw a 92% improvement in production efficiency in Q4 2024. (Image source: PetroNor)

PNGF Sud offshore Congo has generated the largest ever single lifting for PetroNor E&P ASA with an additional 881,192 barrels of oil, priced at US$72.817 per barrel 

The aggregated 2024 lifted and sold volumes are 1,795,460 bbls at an average realised price of US$77.85 per barrel. 

Increased production efficiency 

A bounce back since its last update, the company saw a 92% improvement in production efficiency in Q4 2024 following relatively low infrastructure challenges and a successful workover campaign. While workover requirements have gone down, PetroNor has plans for additional infill drilling activities to boost production.

 With mega projects such as Moho Nord and the Gas Master Plan, Congo's hydrocarbons industry continues to thrive.