By Patience Chat Moses
Representing the voice of the African energy sector, the Executive Chairman of the African Energy Chamber (AEC), Engr. NJ Ayuk has commended the partnership between Namibian energy firm, Crown Energy and Canadian oil and gas company Sintana Energy.
The partnership involves a definitive agreement for the acquisition of 67% of the issued and outstanding shares of Giraffe Energy Investments – owner of a 33% share in PEL 79 in Namibia’s Orange Basin.
Sintana’s PEL 79 acquisition is just one of a recent slate of transactions across Namibia’s high-profile Orange Basin, showcasing the level of interest in the deepwater prospect.
Through the partnership, an 8% interest in Giraffe’s common equity is also set to be contributed towards a community trust, with the contribution facilitated by the Knowledge Katti Foundation.
The AEC boss expressed delight to see yet another transaction within Namibia’s Orange Basin, and believes this to be a critical step towards unlocking the full potential of the country’s deepwater acreage.
He commended Knowledge Katti, Founder of the foundation and Director of Sintana Energy – for his commitment to channeling resources through Sintana Energy into community development initiatives adding that it is a crucial step towards bolstering local participation in Namibia’s oil and gas industry and sets a strong example for other energy companies in Namibia.
The equity contribution has enabled a direct mechanism that unlocks benefits for local communities in Namibia. The contribution represents a first-of-its-kind vehicle and is expected to bolster local participation in the oil and gas industry.
Across Africa, other energy entrepreneurs are embracing shared participation and trust-building with local communities to ensure that they are not only involved in but benefit from energy projects.
The Knowledge Katti Foundation’s initiative in Namibia adds to this trend by providing direct opportunities for communities.
The initiative will initially be available in Erongo, expanding to other regions such as Karras. Through the initiative, the foundation – and Sintana Energy – are ensuring Namibian people participate in the benefits of the industry.
“Namibia demonstrates time and time again that it is the market of choice for frontier E&P players. This represents a crucial opportunity for the domestic market to seize partnerships and help drive the industry forward.
“Through the equity contribution, we hope to empower local communities while ensuring they reap the highest rewards of the oil and gas industry. This initiative sets a benchmark for other energy companies active in Namibia and we look forward to a future where Namibia’s oil and gas projects are led by Namibians,” katti stated.
He added that with the transaction, Sintana Energy is deepening its technical, operational and in-country capabilities while cementing its entry into a high-impact offshore prospect in Namibia.
Sintana Energy has partnered with Quantum Xploration for the acquisition, with both companies set to work closely with Namibia’s national oil company (NAMCOR) to explore and develop PEL 79.
Sintana Energy will acquire a 49% initial purchase of the issued and outstanding shares of Giraffe for a cash consideration of $2 million.
The company will have the option to increase the share to 67% over the next five years for an additional cash payment of $1 million. The equity contribution places community empowerment at the center of million-dollar transactions such as this.
“The move by the Knowledge Katti Foundation represents a significant shift in the industry’s landscape and signals a new approach to community involvement and empowerment.
” By actively engaging with local communities and prioritizing their contribution and role in oil and gas projects, individuals such as Knowledge Katti are shaping a new narrative for the oil and gas sector. Katti is both an entrepreneur and investor who demonstrates a holistic approach to industry development in Namibia,” stated the Executive Chairman of AEC.