Azule Energy Enters Namibia’s Orange Basin with PEL 85 Farm-In

Upstream oil and gas company Azule Energy has signed a farm-in agreement with exploration company Rhino Resources Namibia for a 42.5% interest in Block 2914A – situated in PEL 85 in Namibia’s Orange Basin. The transaction marks the company’s entry into Namibia and its first-ever international deal.

Following completion of the acquisition, Azule Energy will drill two high-impact exploration wells as part of the area’s work program, with the first well expected to spud by the end of 2024. The transaction is contingent on customary third-party approvals from Namibian authorities as well as the block’s joint venture parties.

“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 is dedication to safe and reliable resource development,” said Azule Energy’s CEO Adriano Mongini.

Under the terms of the deal, Azule Energy has also gained an option to become the operator of PEL 85. Currently, the contractor group comprises Rhino Resources as operator with 85%, Namibia’s national oil company NAMCOR with 10%, and indigenous company Korres Investments with 5%.

“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,” stated Rhino Resources CEO Travis Smithard. “We believe that Azule’s unique capabilities of rapid development of technical and financial resources will complement our objectives of delivering value creation for the benefit of all Namibian stakeholders.”