Azule Energy, a joint venture between BP and Eni, has announced a farm-in agreement with Rhino Resources Namibia for a significant stake in an offshore oil block.
The deal, on completion, will grant Azule a 42.5% interest in Block 2914A (PEL 85), situated in the prolific Orange basin offshore Namibia, which has been the site of several major oil discoveries since 2022.
The current contractor group for the block includes Rhino Resources as the operator with an 85% stake, the National Petroleum Corporation of Namibia (NAMCOR) holds a 10% stake while local company Korres Investments owning the remaining 5% stake.
As per the terms of the agreement, the companies plan to drill two high-impact exploration wells in the area, with the first well expected to commence by the end of 2024.
Additionally, Azule Energy has the option to become the operator of PEL 85, pending customary approvals from Namibian authorities and joint venture parties.
Azule Energy CEO Adriano Mangini said: “Our entry into offshore Namibia represents a significant milestone for Azule. We are excited to enter this highly prospective hydrocarbon region and to participate in the unlocking of Namibia's oil and gas potential.
“This venture aligns with Azule Energy's vision of becoming a regional leader in energy exploration and underscores its dedication to safe and reliable resource development.”
Rhino Resources CEO Travis Smithard said: “The signing of this agreement sets the foundations for a new strategic partnership between Rhino and Azule. This partnership is based upon a mutual drive to accelerate exploration on the block with the goal of developing the hydrocarbon potential in the shortest timeframes possible.
“We believe that Azule's unique capabilities of rapid deployment of technical and financial resources will complement our objectives of delivering value creation, for the benefit of all Namibian stakeholders.'
In the same basin, Galp recently announced a significant discovery at the Mopane field within PEL 83, with estimates suggesting the field holds over ten billion barrels of oil.
