Amidst Namibia's recent oil discoveries, major players are making significant investments in the country's growing petroleum sector.

On Monday, April 29, Chevron clinched an 80% stake in Exploration Permit PEL 82, situated in the Walvis Basin off Namibia's coastline, through a leasing agreement with the National Petroleum Corporation of Namibia (NAMCOR). Custos Energy and NAMCOR will share the remaining 20% stake, underscoring Chevron’s commitment to bolstering Namibia’s energy infrastructure. This partnership reflects Chevron’s strategic focus on enhancing its presence in Africa, especially in regions with high growth potential.

This collaboration marks a pivotal moment for Chevron, as it seeks to expand its operations in Namibia’s oil industry. In addition to its new stake in PEL 82, Chevron holds an 80% interest in Exploration Permit PEL 90 in the Orange Basin, an area that has attracted attention following significant oil discoveries by TotalEnergies and Shell.

With projections pointing towards initial oil production by 2030, industry forecasts suggest that the yields could rival those seen in Guyana, according to Patrick Pouyanné, CEO of TotalEnergies. In anticipation of this oil boom, Namibian authorities are implementing initiatives to foster local content-focused partnerships, ensuring that the benefits of these developments extend throughout the local economy.

Under the terms of the leasing agreement, Chevron commits to exploring, developing, and eventually exploiting oil resources within PEL 82. As part of this agreement, Chevron will pay royalties based on the volume of hydrocarbons extracted, aligning its financial contributions with its operational successes.

Chevron’s investment significantly boosts Namibia’s profile on the global energy stage, positioning the country as an emerging powerhouse in the oil market. This development not only supports local economic growth but also contributes to the broader narrative of Africa as a key player in the global energy transition.