Major Oil Companies Believe Namibia is Africa's Next Oil Hot Spot

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Dec 12, 2019, 08:50 ET

PALM BEACH, Florida, Dec. 12, 2019 /PRNewswire/ -- Namibia may hold as much oil as the pre-salt fields offshore Brazil, which holds 16 billion barrels of crude reserve, says Andrew Sekandi, an investment adviser at Alpha Sierra, as quoted by The Africa Report. It's why Exxon Mobil acquired seven million net acres to expand its exploration acreage in offshore Namibia through an agreement with the government of Namibia and the NAMCOR, the state oil company of Namibia. Shell may have also spotted potential opportunity in the region, as well, believing there's a deep water petroleum-system offshore. At the moment, Shell is working in collaboration with American upstream oil company Kosmos Energy and NAMCOR with plans to drill in early 2021. All of that is creating a wide range of opportunity for companies including Reconnaissance Energy Africa Ltd. (TSX-V: RECO)(OTC:LGDOF), Exxon Mobil Corporation (NYSE:XOM), Royal Dutch Shell PLC (NYSE:RDS-A), Chevron Corporation (NYSE:CVX), and BP PLC (NYSE:BP).

Reconnaissance Energy Africa Ltd. (TSXV:RECO)(OTC:LGDOF) BREAKING NEWS: Reconnaissance Energy Africa Ltd. just announced it has engaged Henderson Rigs of Houston, Texas for the purpose of procuring a North American drilling rig and ancillary equipment, specifically designed for Namibian logistics and drilling depths of the Kavango Basin. Henderson Rigs, with locations in Houston and Odessa, Texas and Nisku, Alberta, is a recognized specialist in drilling rig acquisition, refurbishment, rig certification and ongoing support maintenance, providing its services globally to E&P companies and major drilling contractors. Henderson Rigs has been instrumental in identifying several Texas based drilling rigs ideally suited for drilling in the Kavango basin. ReconAfrica is currently conducting a final technical review of these rig options, in view of securing the best option prior to year-end 2019. In keeping with ReconAfrica's expected growth and focus in Namibia, the Company has completed a process for review of its external auditors in 2019. Following completion of the review, the Board of Directors (on the recommendation of the Audit Committee) determined that Deloitte LLP is to be appointed as auditor for the 2019 fiscal year. Deloitte LLP is a global professional services firm with offices in the jurisdictions where the Company conducts its business

Other energy-related developments from around the markets include:

Exxon Mobil Corporation (NYSE:XOM) that Joseph L. Hooley has been elected to its board of directors, effective Jan. 1, 2020. Hooley currently serves as the non-executive board chairman of State Street Corporation and was its chief executive officer from 2010 to 2018. With the election of Hooley, the ExxonMobil board stands at 11 directors, 10 of whom are non-employee directors. Hooley's previous experience leading a large global financial services organization, along with operational and risk management expertise, will bring valuable skills to the ExxonMobil board. State Street is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading.

Royal Dutch Shell PLC's (NYSE:RDS-A) Board announced the pounds sterling and euro equivalent dividend payments in respect of the third quarter 2019 interim dividend, which was announced on October 31, 2019 at US$0.47 per A ordinary share and B ordinary share. Dividends on A Shares will be paid, by default, in euro at the rate of €0.4234 per A Share. Holders of A Shares who have validly submitted pounds sterling currency elections by November 29, 2019 will be entitled to a dividend of 35.73p per A Share. Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 35.73p per B Share. Holders of B Shares who have validly submitted euro currency elections by November 29, 2019 will be entitled to a dividend of €0.4234 per B Share. This dividend will be payable on December 18, 2019 to those members whose names were on the Register of Members on November 15, 2019.

Chevron Corporation (NYSE:CVX) announced a 2020 organic capital and exploratory spending program of $20 billion. The 2020 budget supports a robust portfolio of upstream and downstream investments, highlighted by Chevron's world-class Permian Basin position, the company's major capital project at TCO in Kazakhstan, and an advantaged queue of deepwater opportunities in the Gulf of Mexico. "We are positioning Chevron to win in any environment by ratably investing in the highest return, lowest risk projects in our portfolio. This will be the third consecutive year with organic capital spending held flat at $20 billion, continuing our capital discipline through the cycle. Our emphasis on short cycle investments is expected to deliver improved returns on capital and stronger free cash flow over the long-term," said Chevron Chairman and CEO Michael Wirth.

BP PLC (NYSE:BP) just announced the management of Lightsource BP and BP have agreed to equalise their shareholdings in Lightsource BP to create a simplified 50:50 joint venture structure. As part of the transaction, BP will purchase newly-issued equity in the business to help accelerate Lightsource BP's growth, supporting its ambitious drive towards 10GW of developed assets by the end of 2023. In December 2017, BP acquired 43% of Lightsource which was subsequently rebranded to Lightsource BP. Today, BP has agreed to purchase additional equity in Lightsource BP to become an equal partner in the business with the balance of shares continuing to be held by management and staff.

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