Chevron Bolsters Namibia Stake with Trago Energy Deal

Chevron has strengthened its interest in Namibia's Petroleum Exploration License 90 (PEL 90) after agreeing to a deal with Trago Energy, a subsidiary of Custos Energy. As part of the agreement, Chevron will take over Trago's 10% participating interest in PEL 90 in exchange for $11 million in cash upon completion.

The deal also includes contingent consideration that will be paid out if certain milestones are met, such as appraisal and production milestones tied to oil revenues. These estimated revenue targets range from 1.5-2.5 million barrels of oil, depending on commodity price assumptions.

This agreement comes after Chevron divested a portion of its interest in PEL 90 to Equinor in August, giving the Norwegian company a 17.4% stake in the license. The Nabba-1X well, located within PEL 90, is expected to be drilled before year-end as part of Chevron's broader exploration program across Sub-Saharan Africa.