Global (GBP) has announced that the Namibian Ministry of Mines and Energy (Ministry) has given approval for the Company and its partners to proceed to the first renewal period (FRP) of Walvis Basin licence PEL 94, with a duration of two years from September 2023 to September 2025.
The work commitment for the FRP is to acquire, process and interpret 2000 kms of 3D seismic data (the 3D Seismic) - carried over from the current initial exploration period (IEP) and to drill a well contingent upon the results of interpretation of the 3D Seismic. The original well commitment for the FRP – as specified in the petroleum agreement for PEL 94 - was firm, rather than contingent.
In accordance with standard provisions in the petroleum agreement, the Company and its partners are obliged to issue a guarantee at the beginning of each main phase of the licence, including the FRP. The guarantee is linked to the specified minimum exploration expenditure (MEE), which is the firm work commitment for the FRP (the commitment cost of the 3D Seismic), with the precise quantum to be agreed between Global and the Ministry, and has previously been negotiated as a low percentage of the MEE.
Importantly, the Ministry has waived the usual requirement to relinquish 50% of the licence area at the end of the IEP. This means that Global and its partners have retained all of the prospectivity of the licence on entry to the FRP - notably both of the primary prospects, Marula and Welwitschia Deep, together with the leads which the Company has identified in the eastern part of the licence.
The Company regards the grant of the two-year FRP term (rather than a further one-year extension to the IEP as originally expected) - together with the waiver of the relinquishment requirement - to be a successful outcome. It is also expected to give a major boost to the Company’s ongoing farmout campaign.
In the broader Namibian context, Global is in full agreement with the widely held industry view that the drilling in the Orange Basin by Shell and TotalEnergies to date strongly suggests that Namibia has become a world class petroleum province, in terms of scale of likely resources.
Peter Hill, Global Petroleum’s CEO, commented: “We are very pleased to enter the next phase of PEL 94 with the prospectivity intact and the flexibility which a two-year term gives to us and our partners. We would like to convey our thanks to the Ministry of Mines and Energy accordingly.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/14082023/approval-for-global-to-enter-next-phase-of-licence-pel-94-namibia/
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