Tullow Oil plc, the British based multinational oil and gas exploration company, is set to drill its first ever oil well in Namibia in September.
Tullow expects to start drilling the high-impact Cormorant prospect in the PEL37 licence offshore Namibia.
The company said this frontier well will be drilled by the Ocean Rig Poseidon and has the potential to open a new oil basin.
“The cost of the well will be between US$30 million (N$411 million) to US$40 million (N$540 million. This is gross costs - one shared by all the partners,” spokesman, George Cazenove, told the Windhoek Observer.
Tullow originally acquired a 65 percent operated interest in PEL-37 from Pancontinental Namibia (Pty) Ltd in September 2013.
The current interests in PEL-37 are Tullow 35percent, ONGC Videsh 30 percent; Pancontinental 30 percent; and Paragon Oil & Gas (Pty) Limited five percent.
In 2014, Tullow acquired 3,400 Sqkm 3D in PEL37 and 1000km 3D in PEL30.
Tullow has invested US$63 million (N$864 million) to date in Namibia in PEL 37 and PEL30.
Ocean Rig Poseidon has already arrived in Namibian waters.
“The well will take about 40 days to drill with initial results soon afterwards. We intend to start drilling on 1 September,” Cazenove said.
The drilling by Tullow will be the first well in Namibia since 2014.
Cazenove said the drilling for oil is risky especially with wildcat wells which, by their very nature, have a lower chance of success usually around one in six.
“We have worked on this prospect and conducted extensive seismic surveys and we believe that Cormorant has the highest chance of geological success of all the prospects across our licence. But, as with all exploration wells, the chances of overall success - where all the geology comes to together to create a commercial quantity of oil that can be developed - are not high and we have to be realistic about that,” he said.
Last month, the Namibia Statistics Agency said a vessel worth N$3.5 billion vessels from Bahamas had been imported into Namibia.
“The vessel was a temporary import subject for re-export in the same state; it was actually imported for oil explorations that are currently ongoing within the country. Since it is a temporary import, it will eventually be re-exported after its purpose in Namibia,” Elijah Saushini, senior statistician at the Namibia Statistics Agency told the Windhoek Observer.