Rhino Resources has pulled a surprise in Namibia’s Orange Basin by advancing toward a Final Investment Decision (FID) ahead of Portuguese operator Galp Energia, which is still searching for a strategic development partner for its Mopane discovery.
While Galp’s twin wells, Mopane-1X and Mopane-2X, confirmed one of the basin’s largest oil accumulations earlier in 2025, the company remains in talks with potential partners to share the heavy cost of appraisal and future development, expected to exceed US$4 billion.
In contrast, Rhino has already secured a technically and financially strong alliance with Azule Energy — the BP-Eni-backed joint venture — positioning it to move faster toward commercialisation of its Capricornus and Volans discoveries.
The smaller, privately held Rhino now appears set to become the second company after TotalEnergies to reach an FID in Namibian waters, outpacing larger rivals in one of the world’s most competitive new oil frontiers.
Rhino Resources is poised to become the second company after TotalEnergies to declare a Final Investment Decision (FID) for an offshore oil development in Namibia’s Orange Basin, a move that would cement the country’s status as Africa’s newest oil frontier.
The milestone will follow TotalEnergies’ expected FID on the Venus field in late 2026, with Rhino targeting its own decision shortly thereafter.
Rhino Resources, once a modest Cape Town-based explorer, is now positioned to become one of Namibia’s leading oil and gas developers.
The company’s fortunes turned on sustained exploration, new partnerships, and two significant discoveries in the Orange Basin, which have transformed it from a little-known player into a contender for Namibia’s next offshore production project.
Rhino Resources, a privately owned African exploration and production company, entered Namibia in 2018 when it was awarded Petroleum Exploration Licence (PEL) 85 over Block 2914A in the Orange Basin. The licence was issued by the Ministry of Mines and Energy, with Rhino as operator alongside Namcor and a local Namibian partner.
For years, the company quietly advanced seismic and technical studies while building in-country capacity.
Its persistence paid off in December 2024, when it struck a farm-in partnership with Azule Energy — the BP-Eni-backed joint venture — along with the National Petroleum Corporation of Namibia (Namcor) and Korres Investments (Pty) Ltd, a Namibian-owned company holding a 5% participating interest.
Under the agreement, Rhino retained a 42.5% operating interest in PEL 85, while Azule Energy also took a 42.5% stake, NAMCOR held a 10% stake, and Korres Investments held a 5% stake. The deal secured the technical depth and financial backing needed for deepwater exploration and marked a decisive turning point for the company.
In February 2025, Rhino drilled its first deepwater well, Capricornus-1X, on Block 2914A (PEL 85) in the Orange Basin, in water depths of about 1,650 metres.
The well was spudded on 3 February 2025 and reached total depth on 29 March 2025, targeting an Upper Cretaceous turbidite system.
Data from wireline logs and sidewall cores confirmed a 62-metre net oil-bearing sandstone reservoir.
Drill-stem testing, completed in early April 2025, recorded light oil flow rates of around 11,000 barrels per day, establishing Capricornus as the company’s first commercial-scale discovery, according to Upstream Online.
Rhino followed up with the Volans-1X exploration well in August 2025, drilled about 15 kilometres southeast of Capricornus in 1,720 metres of water.
The well reached total depth on 24 September 2025, intersecting multiple stacked sand units with a 26-metre net gas-condensate pay zone.
Laboratory analysis conducted in October 2025 indicated a condensate-to-gas ratio of more than 140 barrels per million standard cubic feet and condensate liquids of about 40° API gravity, World Oil reported.
The two discoveries, located roughly 15 kilometres apart, became the foundation for Rhino’s development ambitions.
Rhino’s partnership with Halliburton enabled the drilling of both wells through in-country facilities in Walvis Bay and Lüderitz, demonstrating Namibia’s growing offshore capacity.
The company’s local engagement, including the use of Namibian logistics and technical teams, strengthened its reputation with regulators and communities.
The discoveries prompted a strategic shift. Rhino began planning a fast-track development hub that could combine output from Capricornus and Volans.
The company announced its intention to reach a Final Investment Decision (FID) by late 2026 or early 2027, aiming to bring first oil to market by 2030 through a floating production, storage and offloading (FPSO) system.
Chief Executive Travis Smithard told Reuters that Capricornus’ shallower water depth and lower gas-to-oil ratio make it technically simpler and cheaper to develop than TotalEnergies’ deeper Venus field.
Rhino is also acquiring new seismic data north of its acreage to assess the Sagittarius trend, which could further expand the Orange Basin petroleum system.
Rhino’s plan includes an appraisal well at Capricornus and a flow test at Volans in 2026, subject to government approval.
The programme is designed to define development options and potential co-production between the two discoveries.
If successful, Rhino would follow TotalEnergies as the second company to move a Namibian offshore discovery toward production.
Its goal is to establish a locally anchored production hub that could deliver Namibia’s first homegrown offshore oil by 2030.
Beyond Namibia, Rhino Resources holds onshore exploration acreage in South Africa and is assessing additional African opportunities.
According to Smithard, the company’s approach balances geological potential with above-ground risk management to ensure long-term investment stability.
Rhino’s rise from a small independent to a frontier developer marks a significant moment in Namibia’s energy story — one that could see the Orange Basin become Africa’s next major oil province.
