The National Petroleum Corporation of Namibia (NAMCOR) and Reconnaissance Energy Africa (ReconAfrica) have announced the execution of a joint operating agreement to develop the resource potential of the Kavango Sedimentary Basin, Northeast Namibia
Under the terms of the agreement, the two companies will jointly pursue an ongoing petroleum exploration programme in the Kavango East and Kavango West regions of Namibia, with ReconAfrica covering the full costs to commerciality.
The JOA was officially executed on 11 June 2021, and signed by ReconAfrica CEO Scot Evans and NAMCOR managing director Immanuel Mulunga.
“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. 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,” said Immanuel Mulunga, managing director of NAMCOR.
To date, ReconAfrica has drilled two test wells in the Namibian petroleum licence area, both of which have revealed evidence of a working conventional petroleum basin. The company plans to drill an additional two wells in 2021 to determine if the Kavango Sedimentary Basin will yield a commercially viable petroleum reservoir.
The joint venture partners foresee continued national economic opportunities, including local job- creation, substantially adding to the more than 200 jobs for Namibians already generated by the current exploration programme. In addition to the economic benefits that will flow from the agreement, which also include taxes and potential future royalties, the two companies have committed to the adoption of a stringent Health, Safety and Environment Plan that will guide operations.
Last week, ReconAfrica released an update on its progress toward its environmental, social and governance (ESG) platform and upcoming ESG initiatives. Please read more about the company’s ESG and drilling update.
