Norwegian energy company Equinor has agreed to acquire a 17.4 per cent interest in an oil exploration licence offshore Namibia from a subsidiary of US energy major Chevron, marking a significant expansion of its upstream activities in the increasingly attractive Orange Basin.
The transaction gives Equinor a stake in Petroleum Exploration Licence (PEL) 90, one of several offshore blocks in Namibia that have drawn heightened attention following a series of major oil discoveries in the region.
An Equinor official said the acquisition represents the company's first upstream entry into a new country since it expanded into Argentina in 2017.
The Orange Basin has emerged as one of the world's most closely watched exploration regions after a string of oil discoveries in recent years. The discoveries have attracted major international energy companies seeking new reserves and exploration opportunities as they reassess their global portfolios.
Equinor said the Namibian investment was consistent with its strategy of "strengthen and replenish" its international oil and gas portfolio. The Norwegian company has also scaled back some of its previous ambitions for renewable energy investment, a move that mirrors a broader shift among several international oil companies towards maintaining or expanding their traditional oil and gas businesses.
Asked whether Equinor was considering additional acquisitions in Namibia, an Equinor spokesperson said, "We are always looking for interesting opportunities."
The company, however, declined to disclose the value of the transaction. A well is expected to be drilled on the Chevron-operated block before the end of the year, potentially providing further insight into the licence's exploration prospects.
Before the transaction, Chevron subsidiary Harmattan Energy held a 52.5 per cent interest in PEL 90. QatarEnergy owns 27.5 per cent, while Trago Energy and Namibia's state-owned oil company, NAMCOR, each hold 10 per cent.
The acquisition remains subject to regulatory approvals and the completion of the transaction process, Equinor said.
The deal adds to growing international interest in Namibia's offshore petroleum sector, where recent discoveries have raised expectations that the country could develop into a significant oil-producing province.
For Equinor, the move provides access to a frontier exploration market while broadening its international upstream portfolio at a time when major energy companies are competing for prospective acreage capable of delivering new oil and gas resources.