Rhino Resources Namibia Ltd. (Rhino)’s upcoming drilling campaigns off the coast of Namibia could inject an estimated N$1.8 billion (US$94 million) into the local economy.
The company, which holds an Exploration Licence for Block 2914A off the southern coast of Namibia, plans to drill up to 10 exploration and appraisal wells, depending on the success of its initial campaign.
The project, according to documents seen by M&E, is expected to inject approximately N$70 million (US$3.75 million) per month into the local economies of Lüderitz, Walvis Bay, and other areas where contractors will be based.
This local expenditure will encompass a variety of services, including hotels, accommodation, logistics, and fuel costs, thus fostering substantial economic benefits for these communities.
“Rhino estimates a local spending of US$3.75 million per month during the exploration well drilling, totaling N$562 million (US$30 million) for the first campaign of three wells,” documents show.
If the second campaign of seven wells proceeds, an additional N$1.2 billion (US$64 million) could be injected, but ultimately depends on the success of the first drilling campaign.
This comes as Rhino has awarded a Namibian deepwater integrated multi-well construction contract to Halliburton.
Under the agreement, Halliburton will provide complete solutions to construct exploration and appraisal wells, along with testing services.
Halliburton will also extend its country operation facilities to support all product service lines from Namibia to enhance collaboration and maximize asset value for Rhino Resources and Namibian customers.
According to the company, the energy service giant will begin work on the wells in the fourth quarter of 2024.
With more than a decade of exploration in Namibia, Rhino Resources holds operatorship of Block 2914A (PEL 85).
The block, located in the shallower portion of the Orange Basin, is strategically located less than 20 km from the nearest discovery and amidst multiple Namibian discoveries made over the last two years. The block’s proximity to other international operators further underscores its strategic relevance.
In May, Azule Energy, a joint venture between BP and Eni, entered into a strategic farm-in agreement with Rhino Resources in Namibia’s offshore Orange Basin, a move which marks Azule’s entry into Namibia, and its first foray into an international market.
The agreement will grant Azule a 42.5% interest in Block 2914A in petroleum exploration license 85 (PEL85).
The current partners in PEL 85 are Rhino (operator, 85%), Namcor (10%), and a local company, Korres Investments (5%).
