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Galp signs N$911m Namibia oil rig contract

Galp, the operator of Petroleum Exploration License (PEL) 83 in Namibia's Orange Basin, in which businessman Knowledge Katti has an interest through his company Custos Energy, has signed a N$911 million ($50 million) contract with SFL Corporation for the semi-submersible rig Hercules.

 The contract is for two wells plus optional well testing and is expected to start in the fourth quarter of 2023.

With no options, the duration is approximately 115 days, including mobilization to Namibia.

 The Hercules is currently undergoing a special survey in Norway before its mobilization to Canada for a contract with ExxonMobil, before starting transit to Namibia.

 "The new contract illustrates the attractiveness and versatility of the Hercules as a harsh environment oil exploration and development rig for the international market. With increasing demand and few available drilling rigs with Hercules’ capabilities, we see additional upside in day rates and contract term from 2024 onwards,” said Ole B. Hjertaker, CEO of SFL Management AS.

 The contract marks the third secured by Odfjell Drilling for work in Namibia, a company responsible for the management and marketing of the rig.

Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling, said, "Agreeing this contract with Galp Energia is very exciting for our company, and we look forward to working with SFL and Galp Energia to meet expectations safely and efficiently.”

 Galp operates PEL 83 with an 80% interest, while Namibia's National Petroleum Corporation has 10%, and Custos Energy, half-owned by Sintana, has a 10% stake.

 Custos Chairman and Chief Executive Officer, Knowledge Katti, welcomed the development.

"Our blocks, including PEL's 83, 87 and 90, are located at the heart of the Namibian Orange Basin. The significant prospectivity of PEL 83 together with its relatively shallower water depth position it to be one of the most significant and profitable developments,” he said.

"We are happy with our partnership on PEL 83 and look forward to continuing to support Galp in this next phase of exploration."

PEL 83 is situated north of PEL 39, which is home to Shell's basin opening discoveries at Graff-1, La Rona-1 and Jonker-1.

 It is also situated north and west of PEL 56, where TotalEnergies announced its giant oil discovery at Venus-1. Both Shell and Total continue to progress exploration and appraisal activities on their blocks with active 2023.

Custos is a Namibian independent oil and gas exploration company focused on attracting investment and expertise to the Namibian offshore industry.

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Last modified on Monday, 08 May 2023 19:41

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