Chevron unit to buy 10% stake in Namibia PEL 90 for $11 million

Chevron affiliate Harmattan Energy has entered into an agreement to acquire a 10% participating interest in Namibia's Petroleum Exploration License 90 (PEL 90) from Trago Energy, a wholly owned subsidiary of Custos Energy.

The transaction transfers all of Trago's participating interest in the offshore block to Chevron in exchange for $11 million in cash upon completion. The deal also includes further contingent consideration payable as appraisal and production milestones are reached, including revenues tied to commercial production currently estimated at 1.5 million to 2.5 million barrels of oil, depending on commodity price assumptions.

The transfer leaves Trago with ongoing exposure to upcoming exploration activities on PEL 90, including the Nabba-1X exploration well, while removing its funding and capital risk. Completion of the deal remains subject to governmental, regulatory, and third-party approvals.

Chevron entered Namibia as operator of PEL 90 in 2022, following the license award in 2018. QatarEnergy and Equinor also joined the license as partners, according to Custos Chairman and Chief Executive Officer Knowledge Katti.