Sintana Energy has secured a period of exclusivity to evaluate an investment in the PEL 37 block, located in the Walvis Basin, Namibia. The company has signed a Letter of Intent(LOI) granting it exclusive rights until April 2026 to conduct technical, legal and commercial analysis on the block currently operated by Paragon Oil and Gas.
Exclusivity and expansion of the Walvis basin
PEL 37 is located just north of PEL 82, where a subsidiary of Chevron’s Chevron is the current operator and where Custos Energy, a company linked to Sintana, has an active interest. Chevron has announced that it plans to drill an exploration well in that area over the next few quarters, increasing the attractiveness of having a presence in the adjoining block as well.
The Walvis Basin is considered one of the emerging regions with the greatest potential for hydrocarbon development in Africa. PEL 37 covers more than 17,000 km² in shallow to moderate water depths, with prospects directly overlapping oil-rich geological formations.
Sintana will contribute US$1 million as a deposit to secure the agreement, of which one third will be non-refundable in case it decides not to move forward. This advance is part of its diversification strategy, as it seeks to consolidate a relevant position in high-potential and relatively low-cost blocks.
It gives us flexibility and strengthens our presence in an area where we already have interests.
Robert Bosé, CEO of Sintana Energy.
It is a commitment to consolidate our growth platform in southern Africa.
Sintana Energy has been consolidating an exploration portfolio that includes licenses in Namibia, Uruguay and potential future interests in Angola. This new transaction with Paragon underscores its intention to participate in areas with valuable operators and promising geological structures.
The exclusivity obtained in PEL 37 allows Sintana to move forward with caution and knowledge, strengthening its profile as a player in offshore exploration in the region.
Source and photo: Sintana Energy