KEY POINTS
- Chevron will acquire Custos Energy’s 10% stake in Namibia’s PEL 90 for $11 million, plus production-linked payments.
- The deal partly offsets Chevron’s planned 17.4% farm-out to Equinor ahead of Nabba-1X drilling.
- Growing exploration activity by Chevron, Equinor and BP is increasing investment interest in Namibia’s offshore basins.
Chevron has agreed to acquire a 10% stake in an offshore exploration licence in Namibia’s Orange Basin from Custos Energy for $11 million, strengthening its position in one of Africa’s emerging oil exploration frontiers.
The deal involves Petroleum Exploration Licence (PEL) 90, where Chevron is the operator, and includes additional payments tied to potential future production. The transaction is expected to partly offset Chevron’s planned sale of a 17.4% interest in the same licence to Norwegian energy company Equinor.
Custos Energy holds its 10% interest in PEL 90 through its subsidiary, Trago Energy Pty Ltd. The company’s parent, Sintana Energy Inc., which owns 49% of Custos, said the agreement would allow Trago to retain financial exposure to the licence’s exploration potential without bearing the costs and risks associated with future drilling and development.
Under the agreement, Custos will receive $11 million upfront, alongside contingent payments linked to estimated production of between 1.5 million and 2.5 million barrels of oil.
The arrangement allows Custos to benefit financially if exploration activities lead to commercially viable discoveries, while reducing its exposure to the substantial capital requirements and uncertainties associated with offshore exploration.
Sintana Energy Chief Executive Robert Bose said the transaction was part of the company’s strategy to reduce capital commitments and limit financial risks across its exploration portfolio while maintaining opportunities to benefit from successful projects.
He noted that retaining exposure to PEL 90 was particularly valuable because the licence is located in the Orange Basin, an area attracting significant industry attention following major discoveries at the Mopane and Venus prospects.
The licence’s location between these discoveries has increased interest in its geological potential, with the upcoming Nabba-1X exploration well expected to provide further insight into the basin’s hydrocarbon resources.
Chevron prepares for Nabba-1X drilling
Chevron currently holds a 52.5% interest in PEL 90 through Harmattan Energy Ltd and operates the licence. QatarEnergy owns 27.5%, while Namibia’s National Petroleum Corporation, Namcor, holds 10%.
The licence covers Block 2813B and spans approximately 5,500 square kilometres offshore Namibia.
Chevron has been advancing exploration plans in the area, having applied for environmental clearance in late 2023 to drill up to five exploration wells and five appraisal wells.
In August 2026, the US-based energy major said it expected to begin drilling the Nabba-1X exploration well before the end of the year. The well is considered an important step in assessing the hydrocarbon potential of PEL 90.
The planned drilling programme is expected to provide additional geological information and help determine whether the licence contains commercially viable oil and gas resources.
Chevron’s acquisition of Custos’ stake comes as the company prepares to transfer part of its interest in PEL 90 to Equinor.
In August 2026, Equinor agreed to acquire a 17.4% interest in the licence, marking the Norwegian company’s entry into Namibia’s oil and gas sector.
The transaction provides Equinor with access to a drill-ready exploration prospect scheduled for testing in 2026, while supporting its strategy of expanding its international exploration portfolio.
