Public Enterprises minister, Leon Jooste says his Ministry has not sanctioned the disposal of National Petroleum Company of Namibia (NAMCOR)’s 5% carried participating interest in Reconnaissance Energy Africa Ltd. (ReconAfrica) exploration activities in the Kavango Basin.
Although both NAMCOR and ReconAfrica announced that they had entered into an agreement that will see the Namibian company reducing its interest from 10% to 5%, with the purchase & sales agreement expected to be signed on 17 February 2022, Jooste said he was not aware of the deal which values the transection at N$414 million.
“I have already instructed them to consult my office to seek approval before any shareholding or assets may be disposed of. I have not received any related correspondence or request up to date,” Jooste told The Brief.
NAMCOR Managing Director Immanuel Mulunga said the company was delighted to enter into a strategic and mutually beneficial transaction with ReconAfrica.
“The transaction is not only less onerous but adds significant strength to NAMCOR’s balance sheet, as well as provides NAMCOR with exposure to the entire Kavango sedimentary basin in Namibia and Botswana. We have the utmost confidence in ReconAfrica as the Company has proven to be a responsible operator in our country with an excellent track record in the performance of its work obligation,” he said.
ReconAfrica is a junior oil and gas company engaged in the development of the newly discovered Kavango basin, in northeast Namibia, where it holds a 90% working interest in a 25,500-km2 petroleum licence.
On the other hand, NAMCOR is owned by the Namibian Government and its role is to create value across the oil and gas value chain.
