The Namibian government has approved a 12-month extension of Petroleum Exploration Licence 87 (PEL 87), allowing offshore oil and gas exploration in the Orange Basin to continue until January 2027.
Australia-listed Pancontinental Energy, the operator of the licence, confirmed the extension was granted by the Ministry of Mines and Energy, subject to specific work commitments.
These include completing an Environmental Impact Assessment (EIA), reprocessing 3D seismic data and drilling an exploration well.
Pancontinental Chief Executive Officer Iain Smith said the extension secures continued tenure over the licence as the company works to advance the project.
“We are pleased to have now confirmed ongoing tenure for PEL 87, which allows us to continue to focus on securing a farm-in partner to progress the project to drilling,” he said.
PEL 87 covers about 10,970 square kilometres in the offshore Orange Basin, an area that has seen increased exploration activity following recent discoveries.
The licence is held by Pancontinental Orange Pty Ltd (75%), Custos Investments (15%) and NAMCOR (10%).
Sintana Energy, which holds a 7.4% indirect interest, said the extension will support further technical work and partnership discussions.
“We look forward to refining the seismic work as we progress towards a focused drilling programme,” said Chief Executive Officer Robert Bose.
The environmental assessment is already underway, while seismic reprocessing will focus on improving data in key areas of the block.
The extension comes as offshore exploration activity in Namibia continues to accelerate, with operators moving projects towards drilling.
