Shell & Galp hit oil in Namibia’s prolific Orange basin

I would speculate that this area will be at least as big as Guyana's massive finds. That means 6 to 7 FPSOs and several floaters will be working a long time as exploration holes turn into many more production holes.

Galp Concludes First Phase of Mopane Exploration Campaign Offshore Namibia

brazilenergyinsight.com/2024/04/22/galp-concludes-first-phase-of-mopane-exploration-campaign-offshore-namibia/

(OE) Portuguese oil company Galp has successfully completed the first phase of the Mopane exploration campaign in the PEL 83 block offshore Namibia, and started a process of evaluating commerciality of oil discoveries made in the past months.

Galp (80%, operator), together with its partners NAMCOR and Custos (10% each), said it successfully completed the first phase of the Mopane exploration campaign with the conclusion of the Mopane-1X well testing operations.

In January 2024, the Mopane-1X well discovered significant oil columns containing light oil in high-quality reservoir sands at two different levels: AVO-1 and AVO-2.

The rig then moved to the Mopane-2X well location, where in March significant light oil columns were discovered in high-quality reservoir sands across exploration and appraisal targets: AVO-3, AVO-1 and a deeper target.

In particular, the Mopane-2X well found AVO-1 to be in the same pressure regime as in the Mopane-1X discovery well, around 8 km to the east, confirming its lateral extension.

The wells were drilled with Odfjell Drilling-managed semi-submersible rig Hercules.

“The reservoirs log measures confirm good porosities, high pressures and high permeabilities in large hydrocarbon columns. Fluid samples present very low oil viscosity and contain minimum CO2 and no H2S concentrations.

“The flows achieved during the well test have reached the maximum allowed limits of 14 kboepd, potentially positioning Mopane as an important commercial discovery. In the Mopane complex alone, and before drilling additional exploration and appraisal wells, hydrocarbon in-place estimates are 10 billion barrels of oil equivalent, or higher,” Galp said in a statement.

According to the company, all acquired data from the current Mopane drilling campaign will be analyzed and integrated into an updated reservoir model. The model will serve as the basis to refine Galp's near-term drilling plan to further explore, appraise and develop the wider Mopane complex.

Galp said it will continue to analyze the acquired data during the coming weeks to assess the commerciality of the discoveries.

“The successful culmination of the exploration campaign at Mopane, including a well test reaching the maximum allowable limit, further demonstrates the scope and potential of PEL 83 with Mopane alone containing potential in excess of 10 billion barrels of original oil in place making it one of the largest discoveries globally,” said Knowledge Katti, Chairman and Chief Executive Officer of Custos.

Not only is Galp's Mopane-1x well flowing 14,000 barrels a day (out of a SINGLE well),
but Shell's Enigma well tapped into the same, exact reservoir (same pressure, same everything)
that they drilled 8 kilometers away. It's pretty common for a bunch of oil deposits to
populate a successfully drilled basin with the same oil characteristics but for a single,
contiguous reservoir to stretch a distance of 5 miles...

What I didn't see, was how far the producing column zones reached. A lot of Guyana wells
are producing 80 to 160 feet in their producing layers. So we know Enigma is long, laterally,
but how broad is it and how deep does the producing layer(s) go? I think Enigma and Mopane
are both easily considered "commercial", but we don't yet know if we're looking at Guyana
sized deposits, or Saudi-sized deposits yet.

Anything approaching 50 billion barrels or more is going to require a number of floaters that
rival's the 25 that Petrobras is currently deploying, with 30 anticipated by 2028.  It may take 
a decade to get it up over 15 however.  One difference, is that the Orange basin has a 
widely-diversified number of oil company operators, each with it's own drilling aspirations, 
whereas while Brazil has multiple oil companies doing E&D there, Petrobras is the dominant
operator there.

Galp Seeks to Sell Stake in Namibia Oilfield After Discovery

Apr 23, 2024
www.oedigital.com/news/513166-galp-seeks-to-sell-stake-in-namibia-oilfield-after-discovery

Portuguese oil company Galp Energia has launched the sale of half of its stake in an exploration block offshore Namibia where it has made a major oil discovery, three industry sources familiar with the matter told Reuters.

Galp's Mopane discovery, which is estimated to hold at least 10 billion barrels of oil and gas equivalent, appears to be one of the largest in the basin which could help kickstart the southern African country's oil industry even as governments around the world seek to reduce fossil fuel consumption.

Galp has an 80% stake in Petroleum Exploration Licence 83 (PEL 83), which covers almost 10,000 square kilometers (3,860 square miles) in the Orange Basin, with Namibia's national oil company NAMCOR and independent exploration group Custos each holding another 10%.

Lisbon-based Galp is offering to sell half of its stake in the block, said the sources, who could not be named because they are not authorized to speak to the media.

It is also offering to cede control of the development of the project to the potential buyer, expected to be a major international rival with a strong track record in project management, the sources said.

Galp declined to comment. It has previously indicated it could launch a process to raise capital for the development of its projects in Namibia, as they could reach a large scale.

It has hired Bank of America to run the sale process, which could raise several billion dollars for Galp, although the exact value is unclear, the sources said. Bank of America declined to comment.

Galp shares closed over 20% higher following Galp's update on the Mopane field and Reuters reporting the sale process.

The discovery followed successful exploration campaigns in the same area by rivals TotalEnergies and Shell in recent years. Other companies that entered Namibia in recent years include Chevron, Australia's Woodside Energy and Qatar Energy.

Namibia has attracted huge interest from international oil companies seeking to increase production as demand is forecast to remain strong for years.

Redburn analysts said Galp's update on the discovery implied the field had a resource three time larger than previously estimated.

The United Nations has said that by 2050 global oil use must drop by 60% and gas use by 45% if the world is to avoid temperatures increasing above 1.5 degrees Celsius - the threshold beyond which climate change would unleash more disastrous and irreversible impacts.

Global oil demand has yet to peak and is forecast to grow to around 103 million barrels per day in 2024 by the West's energy watchdog the International Energy Agency.

Oil companies say they need to continue to develop new fields to meet rising demand and to compensate for falling production from older fields.

Galp itself aims to reduce its carbon emissions to net zero by 2050 and in 2021 committed to allocate half of its spending towards low-carbon energy by 2025.

Namibia could become a new source of revenue for Galp, which currently has strong investments off the coast of Brazil and is also present in a natural gas project in Mozambique's Rovuma basin.

(Reuters - Reporting by Ron Bousso; Editing by Emelia Sithole-Matarise, Mark Potter and David Evans)

That deepwater could be good for RIG’s high spec underutilized fleet.

Canadian oil & gas firm widens its footprint in Namibia’s prolific Orange Basin

BUSINESS & FINANCE

April 25, 2024, by Melisa Čavčić
www.offshore-energy.biz/canadian-oil-gas-firm-widens-its-footprint-in-namibias-prolific-orange-basin/

Canada-headquartered oil and natural gas exploration player Sintana Energy is entering a new license off the coast of Namibia, thanks to a deal with Crown Energy, a Namibian company, for the acquisition of a stake in Giraffe Energy Investments. This will enable the Canadian firm to expand its exposure to the African country’s Orange Basin, which is emerging as the world’s next hydrocarbon province.


Sintana Energy’s definitive agreement with Crown Energy will enable it to get up to 67% of the issued and outstanding shares of Giraffe Energy, which is the owner of a 33% interest in petroleum exploration license 79 (PEL 79), governing blocks 2815 and 2915 located inboard of blocks operated by BW Energy, Rhino Resources, and Shell in Namibia’s Orange Basin.

According to the Canadian player, the acquisition is structured as an initial purchase of 49% of the issued and outstanding shares of Giraffe from Crown Energy for a cash consideration of $2 million, which the firm proposes to fund from resources on hand.

However, Sintana also retains an option to boost its ownership of Giraffe up to 67% anytime over the five years following closing based on the shares issued and outstanding at the time of the option exercise for an additional cash payment of $1 million.

This acquisition is subject to the satisfaction of various closing conditions and the receipt of all applicable approvals, including the approval of the TSX Venture Exchange. The National Petroleum Corporation of Namibia (NAMCOR) is currently the operator of PEL 79 with a 67% interest.

Sintana believes this license presents “a unique opportunity” to bolster its presence in Namibia’s Orange Basin, as this is one of the last remaining licenses not operated by a private operator. Currently, the emerging regional exploration dynamic is focused on oil prospectivity.

This is hammered home by BW Energy, which acquired 4,600 square kilometers of new 3D seismic in 2023 over PEL 3, located directly west of PEL 79, and has moved to initiate an oil-focused exploration campaign.

Moreover, Rhino Resources, operator of PEL 85 which sits directly outboard to the west of the southern reach of PEL 79, is progressing with the planning and contracting for a two-well campaign. This may be expanded further to an application to drill up to ten wells.

Sintana claims that the existing 2D and 3D coverage supports a material prospect inventory, with recent discoveries, including at Mopane, providing opportunities to deploy new approaches and new insights on potential.

Robert Bose, CEO of Sintana Energy, commented: “We are pleased to announce the potential expansion of our Orange Basin platform through the acquisition of a significant stake in Giraffe Energy. Together with our partners at QXI and Giraffe, we look forward to working with NAMCOR to fully realize the significant geologic, commercial, and strategic value of PEL 79.”

In line with this, the Canadian firm is convinced that its license acquisition associated partnership with Quantum Xploration (QXI), led by Mark Stearns who was previously Asset General Manager for Galp Energia from 2017 to 2023, deepens its technical, operational, and in-country capabilities in Namibia, positioning it for additional opportunities and growth.

“As the Orange Basin continues to deliver outstanding exploration success, we are delighted to work with Sintana and Crown to enhance the technical and operational capabilities at Giraffe. We look forward to supporting NAMCOR with their continuing efforts to unlock the full exploration potential of this highly prospective license,” highlighted Stearnes.

In conjunction with the acquisition, an 8% interest in Giraffe’s common equity will be contributed to a community trust, initiated and supported by the Knowledge Katti Foundation. This contribution is expected to establish the first vehicle of its kind in Namibia, providing a direct mechanism to bring the benefits of the oil and gas industry to local communities.

Nice to know that optimistic 3d seismic surveys in PEL 3 has created a lot of
excitement in PEL 79. It suggests that promising basins appear to extend
east of the giant Mopane discoveries 60 miles to the east of PEL 79.

The Mopane discoveries were very important because they were located ~60
miles northeast of the main discovery fairway pioneered by the giant
Venus discovery. The Mopane wells established a great degree of breadth
of likely oil deposits in Namibia's sector of the Orange Basin and is
greatly increasing exploration activity in the region. More rig tenders
are coming there.