Custos Energy subsidiary Trago Energy has agreed to transfer its 10% participating interest in PEL 90 to Chevron affiliate Harmattan Energy. Trago will receive $11 million in cash at completion; alongside further contingent consideration linked to appraisal and commercial production milestones as exploration activity advances offshore Namibia.
The African Energy Chamber (AEC) supports the transaction, which gives a Namibian company immediate value from one of the country’s most closely watched exploration licenses. The deal removes Trago’s direct funding and capital exposure while preserving financial participation in potential future success on PEL 90 as Chevron advances exploration.
Completion remains subject to government, regulatory and third-party approvals, with the $11 million payment due once those conditions are satisfied. Further consideration will become payable when specific appraisal and production milestones are achieved, with the commercial production component currently estimated to correspond to revenues associated with 1.5 million to 2.5 million barrels of oil.
PEL 90 covers approximately 5,433 km2 in Namibia’s Orange Basin, an offshore province that has attracted major international attention following a series of high-impact discoveries. Chevron operates the license alongside QatarEnergy, Equinor and state-owned Namcor, creating an international partnership with the capital and technical expertise needed for deepwater exploration.
The transaction follows Chevron’s August agreement to farm out a 17.4% participating interest in PEL 90 to Equinor, marking the Norwegian company’s entry into Namibia’s offshore sector. Once both transactions receive the approval, Chevron will hold 45.1%, QatarEnergy 27.5%, Equinor 17.4% and Namcor 10% in the license.
The immediate focus is Nabba-1X, an exploration well being prepared by Chevron to test a drill-ready prospect on PEL 90. The target is associated with the broader mid-Cretaceous sandstone play that has delivered major discoveries elsewhere in the Orange Basin, making the well an important test of the license’s commercial potential. The surrounding discoveries have significantly strengthened interest in Namibia’s offshore acreage and helped attract major international operators to the basin.
TotalEnergies’ Venus discovery on Block 2913B, Galp’s Mopane discovery on PEL 83 and Shell and QatarEnergy’s Graff and Jonker discoveries on PEL 39 have all added momentum to regional exploration.
“Custos Energy’s agreement with Chevron demonstrates how Namibian companies can create value from the country’s natural resources while helping attract international investment and technical expertise into the upstream sector,” says NJ Ayuk, Executive Chairman, AEC. “The continued development of PEL 90 demonstrates the importance of maintaining exploration momentum while creating opportunities for Namibian companies.”
The transaction will also deliver a direct contribution to Namibia’s education infrastructure once completed, extending the local benefits associated with Custos’ participation in the license. Through the Knowledge Katti Foundation, the company will contribute N$10 million to the University of Namibia Foundation for construction of a new campus in Walvis Bay. The contribution builds on the foundation’s existing support for education, having already sponsored more than 120 Namibian students to attend university.
PEL 90 forms part of Namibia’s expanding upstream sector, following major offshore discoveries that have accelerated international exploration and investment. As activity advances, the country can convert offshore momentum into projects, local jobs and business opportunities across drilling, engineering, logistics, fabrication and services, while attracting capital, technology and expertise.
