Azule Energy, a joint venture between bp and Eni, is accelerating its oil operations in Namibia as it seeks to compete with firms such as TotalEnergies SE to become one of the first producers in one of the world’s newest oil frontiers.
Last year, Azule secured a 42.5% stake in Namibia’s Block 2914A from operator Rhino Resources. The partners announced their first Namibian oil discovery in April at the Capricornus well.
Adriano Mongini, Chief Executive Officer of Azule, told Bloomberg, a final investment decision on the project by the end of next year would be “challenging but possible”, potentially paving the way for production to start by 2029. “We’re ready to stay in Namibia for many years because we know what we already have,” Mongini said, adding that the company is already assessing Capricornus for development.
Such a timeline would place Azule in line with TotalEnergies, which is also pursuing development plans in Namibia.
Discoveries by TotalEnergies and Shell Plc three years ago transformed the country into a major exploration hotspot.
However, a series of recent unsuccessful wells and a $400 million writedown by Shell, linked to technical and geological challenges, have tempered expectations.
Earlier this week, Rhino Resources Chief Executive Officer Travis Smithard said the company had an “ambition” to become Namibia’s first oil producer.
Petroleum Commissioner Maggy Shino also said in April that Rhino could achieve this goal ahead of TotalEnergies, following the confirmed light oil discovery at the Capricornus 1-X exploration well in the Orange Basin.
Azule, established in Angola in 2022, has the option to assume operatorship of Block 2914A during the development phase.
