A Norwegian group has won the first exploration license under Namibia's first petroleum licensing round.
Norsk Hydro AS, Den norske stats oljeselskap AS, and Saga Petroleum AS received a license on Block 1911, which covers about 11,000 sq km off northern Namibia (see map, OGJ, Apr. 8, 1991, p. 85). The agreement is to be formalized next month.
The group has committed to drill three deep wells and spend at least $45 million during the first 4 years of the license. They will pay the government a "substantial" share of profits in the event of a commercial discovery and spend at least $1 million training Namibians during the first 4 years.
Namibia's Ministry of Mines and Energy announced the country's first petroleum licensing round last May, 14 months after independence and weeks after enacting petroleum legislation. The application period closed last November, and a government negotiating team began working with selected groups in January.
Negotiations on other exploration areas are expected to continue through second half 1992.
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