Equinor bets on Namibia

Norwegian energy company Equinor is entering Namibia’s oil sector with a 17.4% stake in an offshore exploration licence in the Orange Basin, adding another major international player to the country’s fast-growing petroleum industry.

Equinor has agreed to acquire the participating interest in petroleum exploration licence 90 (PEL 90) from Harmattan Energy Limited, a subsidiary of US energy major Chevron.

The deal marks Equinor’s entry into Namibia and is its first upstream entry into a new country since expanding into Argentina in 2017, according to the company.

PEL 90 covers Block 2813B in the Orange Basin and contains a drill-ready prospect that is scheduled to be tested this year. Chevron plans to drill the Nabba-1X exploration well before the end of 2026.

The transaction gives Equinor exposure to one of the world's most closely watched emerging oil regions, where a series of discoveries in recent years has attracted international oil companies.

“Namibia is a promising basin that adds attractive option value to our portfolio and complements our broader Atlantic Margin position,” said Philippe Mathieu, Equinor’s executive vice-president for Exploration & Production International.

Equinor said the deal forms part of its strategy to strengthen and replenish its international oil and gas portfolio through selective investments. The company has not disclosed the value of the transaction.

Chevron will remain operator of PEL 90 following completion of the transaction, with its interest falling from 52.5% to 35.1%. QatarEnergy will retain a 27.5% interest, while Trago Energy and the National Petroleum Corporation of Namibia (NAMCOR) will each hold 10%.

The transaction remains subject to regulatory approvals and the completion of pre-emption and other closing requirements.