Azule Energy – one of the largest independent equity producers of oil and gas in Angola and a joint venture between energy supermajors Eni and bp – recently announced the successful completion of its strategic farm-in agreement for Block 2914A, offshore Namibia. With this transaction, Azule Energy now officially holds a 42.5% interest in Block 2914A, showcasing the high level of opportunity that lies in the Namibian Orange Basin – one of the world’s most promising offshore exploration prospects.
Representing the voice of the African energy sector, the African Energy Chamber (AEC) stands in full support of Azule Energy’s venture into the Orange Basin, recognizing the value of the transaction in unlocking the full potential of Namibia’s oil and gas resources. The transaction would not have been made possible without the support of the Ministry of Mines and Energy. The AEC believes that the Ministry has moved in a proactive fashion on this deal. Namibian authorities have not been putting road blocks and speed bumps, but rather, they have shown a commonsense and pragmatic approach and it is a big win for the country. It shows Maturity.
Azule Energy is now well-positioned to fulfil its strategy to drill two high-impact exploration wells as part of a work program in the area, with the first well spud on December 18, 2024. These wells are anticipated to play a crucial role in unlocking the hydrocarbon potential of the Orange Basin, thereby supporting Namibia’s energy security and economic growth. Additionally, the agreement provides Azule Energy with an option to become operator of PEL 85 in the development phase – the license where Block 2914A is situated –, showcasing the company’s commitment to responsible resource management and operational excellence.
The contract group for the license now consists of Azule Energy (42.5%), exploration company Rhino Resources as operator (42.5%), Namibia’s national oil company Namcor (10%) and indigenous company Korres Investments (5%). This consortium represents a diverse range of expertise and resources, ensuring a well-rounded approach to exploration and development activities in the basin, which continues to reveal substantial deposits of untapped oil and gas.
The discovery of light oil in the Enigma-1X well – located in PEL 39 – by Shell marked the latest addition to Namibia’s string of sizeable offshore oil discoveries. The discovery comes after an exploration blitz that has rolled out since 2022, which resulted in the Venus-1X, Graff-1X, Jonker-1X, La Rona-1X, Lesedi-1X, Mopane-1X and Mopane-2X finds, showcasing the immense potential lying within the basin.
With each of these finds, Namibia inches closer to harnessing these opportunities for commercialization and, in this context, Azule Energy’s farm-in agreement assumes greater significance. By participating in Namibia’s Orange Basin, Azule Energy not only demonstrates its confidence in the prospectivity of the area but also contributes to the broader goal of enhancing Namibia’s energy landscape.
“Azule Energy’s strategic farm-in agreement in Namibia’s Orange Basin is a monumental step forward for both the country and the African energy sector. This transaction exemplifies the growing international confidence in Africa’s offshore resources and strengthens Namibia’s position as a leading potential energy hub. It is a clear indication of the transformative role Africa’s energy industry will continue to play in the global energy landscape,” states AEC Executive Chairman NJ Ayuk.
