NAMIBIA: Azule Energy, in a significant move marking its first international deal since its inception in 2022, has partnered with Rhino Resources Namibia for a strategic farm-in agreement concerning Block 2914A (PEL85) in offshore Namibia’s Orange Basin.

Under the agreement, Azule Energy will acquire a 42.5 per cent interest in the block, which has been the site of major oil discoveries since 2022.

The current contractor group for Block 2914A includes Rhino (Operator, 85 per cent), Namcor (10 per cent), and local company Korres Investments (Pty) Ltd (5 per cent).

The agreement involves plans to drill two high-impact exploration wells, with the first well expected to commence by the end of 2024.

Additionally, Azule Energy has been granted an option to become the operator of PEL85.

Azule Energy’s CEO, Adriano Mongini, expressed his enthusiasm about the agreement, stating: “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.”

Rhino Resources’ CEO, Travis Smithard, echoed this sentiment, highlighting the strategic partnership’s focus on accelerating exploration to develop the hydrocarbon potential in the region efficiently.

Smithard stated: “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.”

The agreement is subject to customary approvals from Namibian authorities and joint venture parties.

Azule Energy is a joint venture combining bp and Eni’s Angolan businesses, established in August 2022.

Rhino Resources Namibia Ltd is a privately-owned exploration company focused on delivering low-cost energy solutions to the African continent.