Chevron is set to purchase Trago Energy’s 10% participating interest in Namibia’s offshore Petroleum Exploration Licence 90 (PEL 90) for an upfront payment of US$11 million. This agreement allows Trago to avoid funding the upcoming Nabba-1X exploration well while maintaining potential upside through future contingent payments.
Trago, a subsidiary of Custos Energy, has agreed to transfer its entire PEL 90 stake to Chevron’s affiliate, Harmattan Energy Limited, as announced on 1 October 2026. The deal includes an US$11 million cash payment upon completion and additional contingent consideration based on future appraisal and production milestones, linked to estimated commercial production ranging between 1.5 million and 2.5 million barrels of oil.
This transaction shifts Trago’s exposure from direct exploration funding to a contingent economic interest, allowing the company to benefit from any future success without further capital outlay. Completion of the deal is pending government, regulatory, and third-party approvals.
The Nabba-1X well, a highly anticipated test of PEL 90’s potential, will proceed without Trago’s financial involvement once the transaction closes. Sintana Energy, which holds a 49% indirect interest in Trago, emphasized that this move reduces exploration spending risk while preserving upside potential.
Robert Bose, CEO of Sintana Energy: “This transaction demonstrates our ability to reduce capital intensity and downside risk while retaining exposure to high-impact exploration success. We look forward to the Nabba-1X well and the significant prospectivity within the Orange Basin.”
PEL 90 covers approximately 5,433 square kilometers in Namibia’s offshore Orange Basin and is operated by Chevron. License interests before this transaction were Chevron (35.1%), QatarEnergy (27.5%), Equinor (17.4%), Trago (10%), and the National Petroleum Corporation of Namibia (10%). The post-transaction distribution remains unspecified.
The Orange Basin has seen increased exploration activity following major discoveries by TotalEnergies (Venus) and Galp (Mopane). The Nabba-1X well represents the next critical test of PEL 90’s potential, although no drilling date or resource estimate has been disclosed.
As part of the deal, Custos Energy will contribute N$10 million to the University of Namibia Foundation to support the construction of UNAM’s new campus in Walvis Bay, reinforcing local community investment.
The transaction effectively converts Trago’s indirect exposure from a participating license interest requiring capital expenditure into a contingent interest tied to exploration, appraisal, and production success, with Sintana responsible for payments to Trago.
This strategic move aligns with Sintana’s broader goal of managing financial exposure while maintaining upside potential in its Atlantic margin portfolio.
