Repsol SA has agreed subject to regulatory approvals to take a 44% working interest in and become operator of License 0010 offshore northwestern Namibia, said Tower Resources PLC.
Tower’s subsidiary, Neptune Petroleum (Namibia) Ltd., signed a farmout agreement with Arcadia Expro Namibia (Pty.) Ltd. to convert Tower’s 15% carried interest in the license to a 30% working interest, subject to approvals. Neptune is liable to reimburse Arcadia for 30% of Arcadia's past costs on the license or $5.3 million and will assume 30% of future costs.
If the transfers are completed, license interests will be Repsol 44%, Tower 30%, and Arcadia 26%. License 0010 comprises blocks 1910A, 1911, and 2011A, which total 23,000 sq km in 200-3,000 m of water.
Repsol is studying rig options and is consulting with the Namibian government, Arcadia, and Tower. The busy exploration program offshore Namibia will likely attract a number of rigs to the area and, with the large Delta prospect being in a relatively shallow 900-1,300 m of water several rigs would be capable of drilling the well. Repsol also has an active drilling campaign offshore Angola.