QatarEnergy agrees to buy 25% stake in Namibia's offshore oil block in expansion push

QatarEnergy has reached an agreement to acquire a 25% stake in an offshore oil block in Namibia, expanding its presence in the southern African nation. The deal involves a 25% interest in Petroleum Exploration License 0082 (PEL82), which includes blocks 2112B and 2212A. Upon completion, Chevron will own a 55% stake, while Namibia's Namcor and Custos Energy will each hold a 10% interest.

The exploration license covers approximately 11,450 square kilometres off the Namibian coast, with depths ranging from 350 to 2,300 meters. QatarEnergy's Minister of State for Energy Affairs, Saad Al Kaabi, expressed satisfaction with the agreement, stating that it strengthens relations with Chevron and expands QatarEnergy's footprint in Namibia.

Namibia is emerging as a significant oil and gas hub in Africa, with recent discoveries estimated to hold around 11 billion barrels of light oil and 2.2 trillion cubic feet of natural gas reserves. If these reserves are commercially viable, they could significantly boost Namibia's economy, potentially doubling its gross domestic product by 2040.

QatarEnergy is actively collaborating with other global oil companies, such as Shell and TotalEnergies, on exploration projects in Namibia while also expanding its operations in the US and other countries. In April, the company signed a 20-year deal to purchase up to three million tonnes of liquefied natural gas annually from Woodside Energy's Louisiana LNG project, further solidifying its commitment to expanding its supply sources and reducing dependence on the Strait of Hormuz.