Reconnaissance Energy Africa has divested a 20% working interest in Petroleum Exploration License 73 onshore Namibia to BW Energy
This joint venture structure promises to accelerate exploration activities in Namibia and mobilise working capital, with a total potential consideration of US$141mn.
ReconAfrica is currently driving exploration of the onshore Kavango Basin, where it recently spud the Naingopo-1 well targeting the Damara Fold Belt and plans to drill a multi-well exploration programme and acquire a 3D seismic programme in the Kavango Rift Basin.
The company has conducted extensive data and insights into the working petroleum system of the Kavango Basin to help de-risk exploration and identify future drilling targets. As a result of the transaction, BW Energy will participate in two Damara Fold Belt exploration wells and the 3D seismic programme, with the option to participate in two Rift Basin exploration wells over a two-year period. ReconAfrica will retain a 70% working interest in the license, ensuring significant upside for the company if a discovery is made.
Kudu gas field
The deal leverages BW Energy’s existing expertise in oil and gas monetisation in emerging and mature markets. The company is already active in Namibia through an operated stake in the 1.3-trillion-cubic-feet Kudu gas field in the Orange Basin and associated Kudu gas-to-power project, which is currently in its FEED stage and anticipates FID in 2025. The project is set to transform Namibia’s energy matrix through the delivery of 800 MW of gas-fired power for domestic use and regional export. BW Energy also operates the Dussafu Marine license offshore Gabon, home to the Hibiscus and Ruche Field Development set to reach 40,000 barrels per day following the completion of all wells.
The agreement – which includes a $16 million equity investment in ReconAfrica and an additional $45 million in carry payments based on FID – is set to accelerate onshore exploration activities and is the latest in a series of transactions affirming global interest in Namibia’s oil and gas resources. With BW Energy to start drilling at the Kudu gas project in early-2025 – coupled with recent discoveries by Shell, TotalEnergies and Galp in the offshore Orange Basin – Namibia is preparing to witness another wave of investment from global explorers.
ReconAfrica divests interests onshore Namibia to BW Energy
The joint venture structure promises to accelerate exploration activities in Namibia. (Imag source: Adobe Stock)
