Custos Sells Namibia Oil Stake to Chevron for $11 Million

Custos Energy has agreed to sell its 10% stake in Petroleum Exploration License 90 (PEL 90) to Chevron for US$11 million. The deal involves Trago Energy, a subsidiary of Custos, transferring its interest in PEL 90 to Harmattan Energy, a Chevron affiliate. The transaction also includes additional payments tied to future milestones, such as appraisal and production targets, with estimated oil revenues ranging from 1.5 to 2.5 million barrels.

The agreement allows Custos to maintain exposure to PEL 90’s potential while eliminating its funding risks. Knowledge Katti, CEO of Custos, highlighted the company’s role in bringing Chevron to Namibia and welcomed Qatar Energy and Equinor as partners. “As a local company, we have been a proud champion of its potential,” Katti stated.

Upon completion, Custos plans to donate N$10 million to the University of Namibia (Unam) Foundation for its new campus in Walvis Bay. This follows the Knowledge Katti Foundation’s existing support for over 120 Namibian students. Katti emphasized the strategic importance of the campus, saying, “Namibia’s greatest resource is its young people.”

Custos, founded by Katti over a decade ago, focuses on attracting investment to Namibia’s offshore oil and gas industry. The company holds a 10% interest in PEL 83, which includes the Mopane discoveries. The transaction remains subject to regulatory approvals.