Major Oil Discovery Confirmed in Namibia's Orange Basin

A recent appraisal well drilled in Namibia's Orange Basin has confirmed a major oil and gas discovery, potentially transforming the country's energy landscape and economic prospects. The Mopane-1A well, completed on November 28th, encountered light oil and gas-condensate in high-quality reservoir sands, marking the third successful well in the region's second exploration campaign.

The discovery was made in blocks 2813A and 2814B, governed by Petroleum Exploration License 83 (PEL 83). The license is operated by a subsidiary of Portugal's Galp Energia, with Custos Energy and NAMCOR, Namibia's National Petroleum Corporation, each holding a 10% working interest.

According to initial estimates, the discovery could contain up to 10 billion barrels of oil equivalent in place. This figure, if confirmed, would position Namibia as a significant player in the global oil market. The Mopane-1A well results, combined with findings from two previous wells, Mopane-1X and Mopane-2X, have validated the extension and quality of the reservoir structure known as AVO-1.

The reservoir characteristics are particularly promising, with good porosities, high pressures, and high permeabilities observed in large hydrocarbon columns. The oil discovered is of high quality, with very low viscosity and minimal impurities, making it potentially easier and more cost-effective to extract and process.

A drill stem test conducted earlier in the year demonstrated the reservoir's production potential, achieving an infrastructure-constrained flow of 14,000 barrels of oil equivalent per day. This flow rate reached the maximum allowed limits, suggesting that the actual production capacity could be even higher.

The significance of this discovery extends beyond the immediate commercial prospects. For Namibia, a country that has historically not been a major oil producer, this could represent a transformative opportunity. The development of these resources could lead to substantial foreign investment, job creation, and increased government revenues.

Knowledge Katti, Chairman and Chief Executive Officer of Custos Energy, emphasized the importance of the discovery, stating, "The continuing progress on PEL 83, including the results from the Mopane-1A appraisal well, further unveil the potential and quality of the Mopane complex." He added that upcoming wells would continue to explore the "world-class portfolio at the heart of Namibia's Orange Basin."

The Namibian government has also expressed enthusiasm about the discovery. Maggy Shino, Petroleum Commissioner at the Ministry of Mines and Energy, described the results as "another significant milestone for Namibia's energy sector," indicating the government's support for further exploration and development activities.

The PEL 83 joint venture partners are not resting on their laurels. Plans are already in motion for additional exploration and appraisal wells, as well as a high-resolution proprietary 3D seismic campaign scheduled to start in December 2024. These activities will help further delineate the extent and characteristics of the discovery, providing crucial data for future development plans.

As the world grapples with energy transition challenges, discoveries of this magnitude in new regions can have far-reaching implications. While the long-term global shift towards renewable energy sources continues, significant oil and gas discoveries like this one in Namibia can play a crucial role in meeting near to medium-term energy demands and potentially funding the transition to cleaner energy sources.

For Namibia, the challenge now will be to manage this resource responsibly, ensuring that the benefits are shared across society while minimizing environmental impacts. As exploration continues and development plans take shape, all eyes will be on Namibia's emerging role in the global energy landscape.