Hard work finally paying off – Katti
Businessman Knowledge Katti says his many years of hard work in the local petroleum exploration industry are finally “paying off” after joining hands with Australia’s biggest oil producer, Woodside Energy, in the hunt for oil off Namibia’s coastline.
Woodside has entered into an agreement to acquire a 56% interest in petroleum exploration license 87, owned by Katti (15%), his Australian partner Pancontinental Energy (75%) and Namibia’s national oil company, Namcor (10%).
After the sale of part of his share in the exploration licence through his company Custos Investments - reportedly for over N$25 million - Katti will still retain 14% – which is considered a substantial stake in the rich oil industry.
The seismic surveying of the block has started this month, with fast-track processed results expected in late June. The seismic exercise will cost more than N$600 million.
Speaking to Namibian Sun this week, Katti, who entered the energy sector in 2003, said: “We are extremely excited for the future and, as a pioneer, we are happy to see that our hard work over the last 20 years in exploration is paying off”.
Years ago, his company Kunene Energy became a local subsidiary of Brazilian gas and oil company HRT, which became extensively involved in exploration activities in Namibia.
In 2013, HRT and Katti announced at State House that they found a liquid oil presence off the Namibian coast. The drilling results for their first well showed the finds were, however, not of commercial value.
“We are happy to have experienced partners to join our assets, especially after spending more than N$1 billion in seismic surveying and drilling a dry well with HRT,” Katti said.
Critical
According to the businessman, the current exciting prospects around oil discovery in Namibia will prove critical to the country’s economic revitalisation.
Both Shell and TotalEnergies have made huge oil discoveries in Namibia, reportedly worth billions of barrels.
Katti said his company and its partners are ready to help turn around the country’s fortunes.
“The future is bright and we are hoping to see increased economic prosperity, a revitalised manufacturing sector, improvement in standard of living through direct and indirect employment, new sources of government revenues, and strengthened energy security for the nation.”
Risk it
Since oil was discovered, Namibians have complained about the lack of substantive equity in the resource.
“Any Namibian can participate and increase her or his stake in any asset, but I’m yet to meet a local Namibian bank or private fund interested to even risk N$10 million - let alone N$600 million - in financing exploration activities in Namibia,” Katti said.
“We encourage local content policies to empower more Namibians. This is the time for Namibians to unite and take advantage of our blessings instead of thinking of the oil curse in other parts of the world.”
Enumerating the windfalls of his company’s work in Namibia, he said: “Other benefits for advancing our projects cannot be measured with hard numbers. For example, the industry will create jobs that enables workers to have better access to healthcare for themselves and their families.
“In addition, renewed economic vitality in Namibia can reduce the societal risks associated with economic distress.”
Woodside has entered into an agreement to acquire a 56% interest in petroleum exploration license 87, owned by Katti (15%), his Australian partner Pancontinental Energy (75%) and Namibia’s national oil company, Namcor (10%).
After the sale of part of his share in the exploration licence through his company Custos Investments - reportedly for over N$25 million - Katti will still retain 14% – which is considered a substantial stake in the rich oil industry.
The seismic surveying of the block has started this month, with fast-track processed results expected in late June. The seismic exercise will cost more than N$600 million.
Speaking to Namibian Sun this week, Katti, who entered the energy sector in 2003, said: “We are extremely excited for the future and, as a pioneer, we are happy to see that our hard work over the last 20 years in exploration is paying off”.
Years ago, his company Kunene Energy became a local subsidiary of Brazilian gas and oil company HRT, which became extensively involved in exploration activities in Namibia.
In 2013, HRT and Katti announced at State House that they found a liquid oil presence off the Namibian coast. The drilling results for their first well showed the finds were, however, not of commercial value.
“We are happy to have experienced partners to join our assets, especially after spending more than N$1 billion in seismic surveying and drilling a dry well with HRT,” Katti said.
Critical
According to the businessman, the current exciting prospects around oil discovery in Namibia will prove critical to the country’s economic revitalisation.
Both Shell and TotalEnergies have made huge oil discoveries in Namibia, reportedly worth billions of barrels.
Katti said his company and its partners are ready to help turn around the country’s fortunes.
“The future is bright and we are hoping to see increased economic prosperity, a revitalised manufacturing sector, improvement in standard of living through direct and indirect employment, new sources of government revenues, and strengthened energy security for the nation.”
Risk it
Since oil was discovered, Namibians have complained about the lack of substantive equity in the resource.
“Any Namibian can participate and increase her or his stake in any asset, but I’m yet to meet a local Namibian bank or private fund interested to even risk N$10 million - let alone N$600 million - in financing exploration activities in Namibia,” Katti said.
“We encourage local content policies to empower more Namibians. This is the time for Namibians to unite and take advantage of our blessings instead of thinking of the oil curse in other parts of the world.”
Enumerating the windfalls of his company’s work in Namibia, he said: “Other benefits for advancing our projects cannot be measured with hard numbers. For example, the industry will create jobs that enables workers to have better access to healthcare for themselves and their families.
“In addition, renewed economic vitality in Namibia can reduce the societal risks associated with economic distress.”
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