Chariot Oil, which drilled a dry well last month offshore Namibia, says it will now focus on Morocco and Brazil, although it will maintain a presence locally.
“The company plans to switch its near-term focus to its assets in Morocco and Brazil, although it will retain its Namibian interest,” spokesperson, Henry Lerwill, told the Windhoek Observer this week.
“There are no near-term plans for further activity, including drilling another well, in Namibia,” he said.
He, however, remained confident that oil will be discovered in Namibia soon.
“The industry as a whole sees the potential in Namibia. It is, however, disappointing that Chariot did not find commercial hydrocarbons from the exploration well.”
Chariot Oil spent about US$25 million (N$366 million) drilling for oil in Namibia.
The company drilled in its Central Blocks licence offshore Namibia in which it owns a 65 percent stake, Azinam (20 percent), NAMCOR (10 percent) and Ignitus (5 percent).
Tullow Oil’s first exploration well in Namibia also turned out dry in September after the company spent about US$30 million on drilling.
Tullow is currently looking at the data from the drilling before deciding on its next move.
Tullow’s drill was conducted in its Cormorant-1 exploration well in the PEL-37 licence.
Tullow also has another Petroleum Exploration Licence 30.
Both the Tullow Oil and the Chariot drills were carried out by the Ocean Rig Poseidon drillship.
Tullow operates the PEL-37 licence with 35 percent equity and is partnered with ONGC Videsh Ltd (30 percent), Pancontinental Oil & Gas (30 percent) and Paragon (5 percent).
Oil majors including France’s Total and ExxonMobil of the US are expected to drill for oil next year.
Oil companies have invested N$25 billion drilling for oil offshore Namibia since 1990, the Namibia Petroleum Operators Association said in April.
Oil exploration licences issued by the Ministry of Mines and Energy have jumped from two in 2007 to 14 in 2018.