Key Points
- Rhino Resources is set to drill in Namibia’s Orange Basin in early 2025.
- Block 2914A holds promising targets near Galp’s Mopane discovery.
- Azule Energy eyes major stake in Rhino’s exploration project.
Rhino Resources, a South African-owned oil exploration company, announced plans to begin drilling its first wells in Namibia’s Orange Basin in early 2025, marking the company’s entrance into the country’s booming upstream sector.
Namibia’s National Petroleum Corporation (NAMCOR) confirmed the move during the Africa Energy Week conference in Cape Town.
Victoria Sibeya, NAMCOR’s executive for upstream exploration, said Rhino Resources will be one of three companies, alongside Galp and Chevron, actively drilling in the Orange Basin within the next four months.
Rhino to drill high-impact wells near mopane
Rhino holds an 85 percent stake in Block 2914A under Petroleum Exploration License 85, where the company plans to drill two high-impact wells. Korres Investments and NAMCOR hold minority stakes of 5 percent and 10 percent, respectively.
Rhino’s drilling campaign is situated less than 20 kilometers from Portugal-based Galp’s Mopane discovery, which was instrumental in sparking heightened interest in the basin.
Orange Basin draws major oil exploration interest
The Orange Basin, which gained attention after Shell’s 2022 discoveries, has emerged as a promising frontier for oil development, attracting significant interest from major oil companies.
NAMCOR said Galp has begun operations in PEL 83, with Chevron expected to initiate its campaign in PEL 90 by the end of 2024. Rhino Resources will target shallow water sites within its designated block, noting strong initial survey data that points to “multiple play types” and abundant drilling prospects.
Industry heavyweights eyeing Rhino block stakes
Rhino’s Block 2914A has also attracted attention from international players like Azule Energy, a joint venture between BP and Eni, which has pursued a 42.5 percent stake. If approved, the farm-in agreement could mark Azule’s first exploration outside of Angola.
In a May statement, Rhino Resources CEO Travis Smithard called the potential partnership an opportunity to expedite the project’s timeline with Azule’s technical and financial backing.
Azule is seeking Namibian regulatory approvals to finalize the agreement, which could position it as an operator within the block. Galp has also floated the possibility of a farm-out for up to half of its 80 percent stake in PEL 83 but announced it will delay such moves until at least 2025.
NAMCOR outlines multi-basin exploration strategy
While the Orange Basin remains a focus, NAMCOR is also advancing plans across other basins. The state oil company is in the final stages of an agreement with Chevron for exploration rights in the Walvis Basin and is preparing to drill in the Namibe Basin’s Block 1711.
In the country’s northern region, the Luderitz Basin, NAMCOR has noted promising hydrocarbon flows based on recent seismic studies.
Analysts project that the Orange Basin’s Venus development could begin delivering oil by 2030, with Namibian crude production potentially reaching 180,000 barrels per day by 2032.
