Tuesday, October 16, 2018

Chariot Oil & Gas Limited To Abandon Namibia

Chariot Oil and Gas failed in its latest bid to find oil offshore Namibia 16/10/2018
The Chariot Oil & Gas Limited has announced a disappointing result about oil exploration offshore Namibia, which this drags the country into uncertainty future. The Moroccan based company has an employment force drawn from Namibian cheap labours, technicians and qualified engineers like Robert Mwanachilenga, a Country Manager.  The company owned about 65% chunks of the mining project, Azinam with 20%, NAMCOR 10% and Ignitus 5%. 

Chariot Oil & Gas Limited is an independent exploration group heavily invested by top Namibian elites and politicians. In 2013 the company was awarded special exploring licences that cover two blocks in Namibia. It already got three blocks in Morocco and four blocks in the Barreirinhas Basin offshore Brazil. All of these blocks are currently in the exploration phase include Namibia, which led into an unfeasible predicament.

In the official report stated that the well has been safely drilled to a total MD of 4,165 m to test the stacked targets in the oceanic dredging below the sea bottom. The well has been successfully penetrated to anticipate turbidite reservoir sands, in line with the pre-drill prognosis, however, the reservoirs were water-bearing. The data collected in the unsatisfactory exploration will be used to calibrate the existing datasets to understand the implications of the results. The well, which was operated by Chariot and drilled by the Ocean Rig Poseidon drillship, will be unplugged and abandoned. 

Larry Bottomley, the CEO of the company, said: “Whilst very disappointing that we have not established a hydrocarbon accumulation in the prospect, we have learnt valuable information about the reservoir potential of these turbidite systems which form the primary targets across many of the prospects within the Central Blocks portfolio. 

In another separate case Tullow Oil, a company specialized in oil exploring in deep-water. Tullow awarded with exploring right, the Petroleum Exploration License 37 (“PEL 37”) from the Ministry of Mines and Energy to mine an area of 17,295 square km in the Walvis Basin located about 420 kilometres south of the Angolan-Namibian border. The company got 35% equity and joined some partnership with ONGC Videsh (30%), Pancontinental Oil & Gas (30%) and Paragon Investment (5%). However, all the mining activities have ceased for good. 


The international oil and gas firms, such as Tullow and Repsol halt all operations: Ji-Elle.
Oil and Gas in Namibia
HRT President Joe Paulbeen and Katti present oil discovered off Walvis Bay after a 60-day drilling operation which cost N$810 million.
This is not the first time, Namibian elites luring international investors in the country through their innocuous projects and business investment futile which have no any tangible benefit to the economy of the state; besides the government oftentimes pouring a hefty amount of capital for initial investment into infeasible schemes like Kudu Gas and other projects which create no positive productivity. People make their quick bucks while the host state suffers in bail out its parastatals (SOEs) like e.g. National Petroleum Corporation of Namibia (NAMCOR)where the government have spent N$260 million in 2010 settling debts using taxpayers' money to help fund the bankrupt, state-owned-oil conglomerate, which was supposed to generate more income for the state.

In 2015 the HRT which now called PetroRio has closed shop when it failed to find commercial oil in Namibia. Despite the event was anticipated by the jubilation of the elites include Knowledge Katti who dragged President Hage into the fantasy.  The short-lived joy and the announcement of oil discovery in Namibia at State House's function attended by many other senior government officials include Founding Father Dr Sam Nujoma.  It was really a big joy when the news was made in 2013 which overwhelmed the attention of the people and international media, but at the end, we have seen investors pulling plugs off and companies packed and go, leaving behind an economic bubble for the state to clean its own mess.

The scheme has actual enriched the initial owners who jumped ship later leaving Namibian dry when newly employed Namibians seen themselves in the streets. PetroRio was the second largest Namibian exploration licence holder with 10 oil blocks off the Namibian coast.  It has roped in prominent politicians and businesspeople in its deals but it could not discover any oil with commercial values among its three failed drills.

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