How Chevron is Expanding Its Namibian Footprint, And What It Means for Energy

Chevron has strengthened its presence in Namibia’s offshore oil and gas sector by acquiring an 80% stake and operatorship of Petroleum Exploration License (PEL) 82 in the Walvis Basin.

This move, facilitated through a farm-in agreement by its subsidiary, Chevron Namibia Exploration II Limited, underscores the company’s confidence in Namibia as an emerging energy hub.

The agreement was finalized with Custos Energy, a Namibian independent oil and gas exploration company.

Custos Energy and the National Petroleum Corporation of Namibia (NAMCOR), the state-owned oil company, will each retain a 10% stake in PEL 82.

This structure ensures that Namibia remains actively involved in the development of its natural resources.

PEL 82 covers blocks 2112B and 2212A and is considered a high-potential area for exploration.

The region has seen extensive investment in seismic data acquisition, with over 3,500 kilometers of 2D seismic data and 9,500 square kilometers of 3D seismic data collected.

Previous drilling efforts, including the Murombe-1 and Wingat-1 wells, have provided valuable geological insights.

Notably, the Wingat-1 well recovered light oil, enhancing confidence in the block’s potential.

This acquisition adds to Chevron’s existing exploration assets in Namibia. The company already operates PEL 90 in the Orange Basin, where it recently drilled its first deepwater offshore well in collaboration with Trago Energy (a Custos subsidiary) and NAMCOR.

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While that drilling did not result in a commercial discovery, it yielded critical geological data to guide future exploration efforts.

Knowledge Katti, Chairman and CEO of Custos Energy, welcomed Chevron’s expanded role, stating, “Chevron’s entry into PEL 82 highlights the quality and potential of our offshore portfolio. We are excited to strengthen our partnership as we explore another emerging basin in Namibia.”

Chevron’s acquisition aligns with its global strategy of expanding exploration in geologically promising areas.

It also reinforces Namibia’s status as a key player in Africa’s energy landscape. Increased exploration activity is expected to boost the Namibian economy through job creation, infrastructure development, and government revenues.

However, responsible resource management will be essential to ensuring sustainable benefits for the country.

Beyond Namibia, Chevron has also expressed interest in expanding its exploration activities globally.

The company recently submitted a non-binding expression of interest for an exploration block in Greece, targeting an area southwest of the Peloponnese peninsula and west of Crete.

This move complements its existing energy operations in Israel, Egypt, and Cyprus.

Chevron’s investment in PEL 82 signals continued momentum in Namibia’s offshore sector, attracting further interest from global energy players and positioning the country as a significant contributor to Africa’s oil and gas future.