BP drops immediate Namibian exploration plans

Oil giant BP last week let go of its shares in an exploration block off Namibia, leaving its London-based farm-in partner Serica Energy to look for new possible investors. Serica Energy is the major shareholder in Luderitz Basin Licence 0047 offshore Namibia, with BP, the National Petroleum Corporation of Namibia (Namcor) and Indigenous Energy Ltd having held 30%, 10% and 5% interest respectively. In a statement issued on Friday, however, Selica announced that BP had decided not to exercise its option to increase interest in the basin, an offer which expires on December 31. Under the option, BP would have been required to drill a well in the licence block by the end of 2015. Thus, as of the end of 2013, BP’s 30% interest in the block is to be reassigned to Serica Energy, leaving that company with 85% interest. Despite the drawback, Serica last week said it remains confident in the potential for a major oil discovery offshore Namibia, adding that it would continue exploring. “With positive results from the 3D survey and recent third-party drilling demonstrating the regional presence of both source rock and recovered oil samples, Serica believes that all of the necessary ingredients for significant oil accumulations are present in its licence area,” the company statement reads. “The withdrawal of BP leaves Serica with a valuable and extensive data set and interpretation and provides the company with an opportunity to attract new partners and to retain a larger percentage interest.” WINDHOEK DENVER ISAACS