QatarEnergy Expands African Footprint with Significant Stake in Namibian Offshore Oil Block

QatarEnergy has announced an agreement to acquire a 25 per cent interest in an offshore oil block operated by Chevron in Namibia. This move is a key part of the state-owned company's strategic expansion into the southern African nation.

The agreement grants QatarEnergy a stake in Petroleum Exploration License 0082 (PEL82), which encompasses blocks 2112B and 2212A. Following the completion of the transaction, Chevron will retain a 55 per cent interest in the block. Namibia's national oil company, Namcor, and Custos Energy will each hold a 10 per cent interest. The deal is contingent upon receiving the necessary customary regulatory approvals.

The PEL82 exploration license covers an extensive area of approximately 11,450 square kilometres off the coast of Namibia, with water depths ranging from 350 to 2,300 metres. Saad Al Kaabi, Qatar’s Minister of State for Energy Affairs and chief executive of QatarEnergy, expressed his satisfaction, stating, “We are pleased to further strengthen our relations with Chevron through this agreement, and to expand and diversify our footprint in Namibia.”

Namibia is rapidly emerging as a significant hub for oil and gas exploration in Africa, with recent discoveries in its offshore Orange Basin. These finds are estimated to contain substantial reserves of approximately 11 billion barrels of light oil and 2.2 trillion cubic feet of natural gas. The US-based International Trade Administration suggests that if these discoveries prove commercially viable, they could generate unprecedented revenue for the Namibian government, potentially more than doubling the country's gross domestic product by 2040.

QatarEnergy is actively engaged with other major international oil companies, including Shell and TotalEnergies, on exploration blocks within Namibia. This initiative aligns with QatarEnergy's broader global expansion strategy, which includes ventures in the United States and other regions. Notably, QatarEnergy recently finalized a 20-year agreement to purchase up to three million tonnes per year of liquefied natural gas from Woodside Energy's Louisiana LNG project, reinforcing its commitment to US supply chains and hedging against potential disruptions in the Strait of Hormuz. Furthermore, QatarEnergy reported a hydrocarbon discovery off the coast of the Republic of the Congo in April, further enhancing its international upstream portfolio.