Reconnaissance Energy Africa (ReconAfrica) has divested a 20 per cent working interest in Petroleum Exploration License 73 onshore Namibia to Oslo-listed oil and gas player BW Energy. This new joint venture structure promises to accelerate exploration activities in Namibia and mobilize working capital, with a total potential consideration of $141 million.

ReconAfrica is currently driving exploration of the onshore Kavango Basin, where it recently spud the Naingopo-1 well targeting the Damara Fold Belt and plans to drill a multi-well exploration program and acquire a 3D seismic program in the Kavango Rift Basin.

The company has conducted extensive data and insights into the working petroleum system of the Kavango Basin to help de-risk exploration and identify future drilling targets.

As a result of the transaction, BW Energy will participate in two Damara Fold Belt exploration wells and the 3D seismic program, with the option to participate in two Rift Basin exploration wells over a two-year period.

ReconAfrica will retain a 70 per cent working interest in the license, ensuring significant upside for the company if a discovery is made.

The deal leverages BW Energy’s existing expertise in oil and gas monetization in emerging and mature markets.

The company is already active in Namibia through an operated stake in the 1.3-trillion-cubic-feet Kudu gas field in the Orange Basin and associated Kudu gas-to-power project, which is currently in its FEED stage and anticipates FID in 2025.

The project is set to transform Namibia’s energy matrix through the delivery of 800 MW of gas-fired power for domestic use and regional export. BW Energy also operates the Dussafu Marine license offshore Gabon, home to the Hibiscus and Ruche Field Development set to reach 40,000 barrels per day following the completion of all wells.

The African Energy Chamber (AEC) commends BW Energy for expanding its footprint in exploration hotspots like Namibia and betting on Africa’s upstream landscape.