In a significant development for Namibia's emerging oil and gas sector, Custos Energy has announced the commencement of a second exploration campaign in the country's Orange Basin. The campaign, centered on Petroleum Exploration License 83 (PEL 83), began with the spudding of the Mopane 1-A well on October 23rd, signaling a new phase in the evaluation of what could be one of the world's most promising hydrocarbon regions.
The Mopane 1-A well is the first in a planned program of up to four wells, comprising two exploration and two appraisal wells. This ambitious undertaking follows a successful initial campaign earlier in 2024, which resulted in multiple discoveries and an estimated 10 billion barrels of oil equivalent in original oil in place (OOIP). The previous campaign also included a drill stem test that achieved an infrastructure-constrained flow of 14,000 barrels of oil equivalent per day, hinting at the substantial commercial potential of the area.
Custos Energy, holding a 10% working interest in PEL 83 alongside operator Galp Energia of Portugal and Namibia's National Petroleum Corporation (NAMCOR), views this second campaign as crucial for further understanding the scope and quality of the Mopane complex. The initial findings from the first campaign were highly encouraging, revealing reservoirs with good porosities, high pressures, and high permeabilities, coupled with large hydrocarbon columns featuring very low oil viscosity and an absence of CO2 and H2S.
The significance of this exploration campaign extends beyond Custos Energy and its partners. For Namibia, the continued development of the Orange Basin represents a potential economic windfall. If the Mopane complex lives up to its early promise, it could position Namibia as a major player in the global oil and gas market, bringing with it substantial foreign investment, job creation, and revenue streams for the country.
From an industry perspective, the Orange Basin's emergence as a hydrocarbon hotspot is attracting international attention. The success of this campaign could further cement the region's status as a new frontier in oil and gas exploration, potentially shifting some focus away from more established production areas. This could have far-reaching implications for global energy markets and supply chains.
Environmental considerations also play a crucial role in the development of these resources. While the absence of CO2 and H2S in the discovered hydrocarbons is a positive factor from an extraction and processing standpoint, the broader impact of developing new oil and gas fields in an era of increasing climate concern cannot be overlooked. The industry will be watching closely to see how Namibia and the involved companies balance resource development with environmental stewardship.
As the drilling of Mopane 1-A progresses, stakeholders across the spectrum – from local communities in Namibia to international energy markets – will be keenly awaiting results. The outcomes of this well, and the subsequent wells in the program, have the potential to not only shape the future of Namibia's energy sector but also to influence global hydrocarbon exploration strategies and energy security discussions.
The commencement of this second exploration campaign marks a critical juncture in the development of Namibia's offshore resources. With each new well, the picture of the Orange Basin's potential becomes clearer, bringing with it the promise of economic development, technological advancement, and the challenges of responsible resource management in a changing global energy landscape.
