Chariot Scales Back Namibia Exposure

UK-based explorer Chariot is relinquishing certain interests offshore Namibia but retaining others.

The London AIM-listed firm said August 29 it has “elected not to enter into the first renewal exploration period of the exploration licences covering each of the Namibian blocks 2714A and 2714B” but retains an option to back-in for 10% equity later for no financial consideration.

Blocks 2714A and 2714B were operated by Chariot with a 85% interest, with Namibian state Namcor holding 10% and Namibian E&P firm Quiver 5%. Chariot said its decision was made in line with its focus on portfolio management and capital discipline, and that both partners and the Namibian Ministry of Mines and Energy had been notified of this decision and that the process of withdrawal is now underway. 

Chariot CEO Larry Bottomley said: “Namcor has requested that Chariot remain engaged in the partnering process through a zero-cost option to back-in after exploration drilling in recognition of the depth of understanding of the Chariot team of these licences.”

He added: “Our operational focus is on preparing for the drilling programme in Morocco, progressing preparations to drill in the Central Blocks in Namibia, and launching the partnering process in Brazil.” Chariot’s website said prospect B on its Namibia offshore ‘central blocks’ 2312 and 2412A is “drill-ready”, subject to acquiring partners, with gross mean prospective resources of 469mn bbls, mainly oil.

Chariot will retain some Namibia interests (Credit: Chariot Oil & Gas)

Meanwhile elsewhere offshore Namibia, a final investment decision is due 4Q 2017 from Singapore-based shipowner BW Gas on whether to proceed with an investment in the Kudu offshore gas project, pegged to an onshore gas-to-power project. BW Gas farmed into the licence in February 2017.

Mark Smedley