Harmattan Energy Ltd., an affiliate of Chevron Corp., has agreed to a deal with Custos Energy (Pty) Ltd. subsidiary Trago Energy (Pty) Ltd. for interest in Petroleum Exploration License 90 (PEL 90) offshore Namibia.  

Under the agreement, Trago will transfer all of its participating interest (10%) in PEL 90 in Namibia’s Orange Basin to license-operator Chevron, in exchange for $11 million in cash at completion. Further contingent consideration is payable on achievement of appraisal and production milestones, including revenues associated with commercial production currently estimated at 1.5-2.5 million bbl of oil (dependent upon commodity price assumptions), Custos said.

With the deal, Chevron adds interests that help offset a famout deal entered into with Equinor. 

In August, the operator agreed to divest to Equinor a 17.4% portion of its interest in the license, which contains a drill-ready prospect—Nabba-1X—slated for drilling before yearend. The well is part of a broader multi-well exploration program planned by Chevron across Sub-Saharan Africa. Nabba-1X will be Chevron's second well offshore Namibia following Kapana-1X, where the company gathered geological data but did not encounter commercial hydrocarbons.

Completion of Trago Energy’s farm-out to Chevron is conditional upon various governmental, regulatory, and third-party approvals.