Namibia has approved Azule Energy’s farm-out agreement with Rhino Resources in Block 2914A PEL 85 in the Orange Basin.
The companies announced the agreement in May 2024.
Azule Energy says that with the completion of the transaction, it officially holds a 42.5% interest in the block through its subsidiary Azule Energy Exploration Angola, while the operator, Rhino Resources Namibia, Ltd., has 42.5%.
Namcor has 10%, and Korres Investments (Pty) Ltd. has the remaining 5%.
Per the farm-out agreement, Azule Energy can become an operator for the development phase.
The plan of drilling two high-impact wells remains in place, with the first well expected to spud on 18 December 2024.
Azule Energy’s CEO, Adriano Mongini, said Azule is fully committed to leveraging its experience to safely and reliably unlock the hydrocarbon potential of the license and deliver value for all Namibian stakeholders.
Rhino’s CEO, Travis Smithard, said the approval represents another key milestone in Rhino’s organic growth strategy, which sees the company leveraging its exploration expertise in conjunction with the fast-track development capabilities of Azule to enhance value creation for all stakeholders.
Azule Energy is a 50/50 independent joint venture officially established on 1 August 2022, combining the bp and Eni Angolan businesses.
The company is Angola’s largest independent equity producer of oil and gas, holding net resources of 2 billion barrels of oil equivalent and growing equity production to about 250,000 barrels of oil equivalent a day (boe/d) over the next 4 years.
It holds stakes in 18 licenses, participates in the Angola LNG Limited, and is the operator of the New Gas Consortium.
Azule Energy is also a shareholder in Solenova, a solar company jointly held with Sonangol, and is collaborating with the Luanda Refinery.
