Chevron has failed to find commercially viable oil in Namibia.
They are the second company to announce such results after Shell wrote-off US$400 million of their investment in an oil block in Namibia last week.
According to international media reports, Chevron on Wednesday said it did not find commercial hydrocarbon reserves in an exploration well in Namibia’s Orange Basin.
The United States oil producer said the well called Kapana 1X in the PEL90 block provided valuable information about the basin and the company anticipated it would explore further in Namibia.
However, Shakwa Nyambe, a specialised energy sector lawyer and the managing partner of SNC Incorporated, says Chevron’s petroleum block is big and they have just drilled one well so far.
“The block is big and it does not mean it’s all over for them. They can go back to their geological data, drill somewhere and strike oil,” he says.
Namibia’s national oil company, Namcor, in April said it had signed a development deal with Chevron to have the company take an 80% operating working interest in an offshore block in the Walvis Basin.
– email: matthew@namibian.com.na
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