Sintana Energy strikes $11M deal for Chevron affiliate to take PEL 90 stake

Sintana Energy has agreed to transfer its indirect interest in Namibia’s Petroleum Exploration Licence 90 (PEL 90) to a Chevron affiliate, Harmattan Energy Limited, for $11 million upfront. The deal involves Trago Energy, in which Sintana holds a 49% stake, transferring its 10% participating interest in PEL 90 to Harmattan. The transaction also includes contingent payments tied to future appraisal and production milestones, with potential revenues from commercial production estimated at 1.5 million to 2.5 million barrels of oil.

CEO Robert Bose described the agreement as aligning with Sintana’s strategy to reduce capital requirements while retaining exposure to high-impact exploration projects. The upfront cash and potential milestone payments allow Sintana to benefit from PEL 90’s exploration potential without the burden of direct capital commitments. This approach helps manage risk while preserving upside opportunities.

The focus now shifts to the Nabba 1-X exploration well, a key opportunity to test the prospectivity of the Orange Basin, a region known for major discoveries like Mopane and Venus. By maintaining capital-free exposure to PEL 90, Sintana aims to leverage the licence’s strategic location and the broader industry attention on the Orange Basin, where significant exploration successes have been recorded.

The transaction reflects Sintana’s broader strategy of balancing exploration exposure with capital efficiency across its Atlantic margin assets. The company continues to hold interests in the region, seeking to maximize value from high-impact projects while managing financial commitments.