NAMIBIA: Orange Basin Industry Update
Courtesy Oregen Energyy
The Orange Basin continues to evolve rapidly from frontier exploration into an active appraisal, development planning, and renewed exploration drilling environment. Recent public disclosures from operators and partners reinforce two important themes: (i) increasing drilling activity and data density across the basin, and (ii) strategic consolidation by majors seeking to create scalable, long-term hub-style developments. Together, these dynamics can improve the strategic value of well-positioned, high-quality exploration acreage.
The announced Oregen LOI is the critical next step towards placing the Company within the core fairway of the Orange Basin. If consummated, an investment in the share capital of Petrovena, and its anticipated grant of a license on Block 2812Ab, would allow Oregen to establish a position in the Orange Basin’s most prospective deepwater corridor, alongside supermajors and in close proximity to multiple significant discoveries.
TotalEnergies takes operatorship in strategic asset swap with Galp at Mopane
In December 2025, TotalEnergies announced an agreement with Galp under which TotalEnergies will acquire a 40% operated interest in PEL 83, including the Mopane discovery, while Galp will acquire interests in PEL 56 (Venus) and PEL 91. Under the agreement, TotalEnergies will carry 50% of Galp’s capital expenditures for exploration and appraisal at Mopane and the initial development phase on PEL 83, with the carry to be repaid from future cash flows. TotalEnergies and Galp also agreed to launch an exploration and appraisal campaign including three wells over the next two years, with a first well planned in 2026. Completion of the transaction is expected to occur in 2026, subject to customary approvals.
Mopane development scale points to a potential new offshore production hub
TotalEnergies has highlighted a development pathway at Mopane that could support production in excess of 200,000 barrels per day, supported by an exploration and appraisal program in 2026 and 2027, including the Mopane Extension well in 2026 and two further appraisal wells in 2027, with a stated target for FID in 2028. Industry reporting has described a potential first-phase development concept centered on a single FPSO with approximately 200,000 barrels per day capacity.
Rhino Resources and partners confirm Volans-1X gas-condensate discovery, with further appraisal planned
Rhino Resources and its joint venture partners have announced a discovery of high liquid-yield gas condensate at the Volans-1X well on Block 2914A (PEL 85) offshore Namibia and latest tests confirm good flow and reservoir deliverability. The well encountered 26 metres of net pay within rich gas-condensate bearing reservoirs with no observed water contact. Laboratory analysis indicated a high condensate-to-gas ratio and liquids around 40 degrees API. PEL 85 is operated by Rhino Resources with a 42.5% working interest, with Azule Energy (bp/Eni) holding 42.5%, NAMCOR holding 10%, and Korres Investments holding 5%. Rhino plans to drill an appraisal well at the Capricornus prospect in 2026 and undertake additional testing at Volans to better define development options.
Shell to restart Orange Basin exploration drilling in April 2026
Shell, together with partners QatarEnergy and NAMCOR, plans to launch a new drilling campaign in the offshore PEL 39 block from April 2026, using the Deepsea Mira rig. The return to drilling by another supermajor underscores the renewed momentum in Orange Basin exploration and appraisal activity.
Venus remains a key basin catalyst as partners target FID in 2026
TotalEnergies continues to state that it is working toward a potential FID on the Venus development in 2026. TotalEnergies has outlined a Venus development concept targeting approximately 150,000 barrels per day of production capacity with first oil targeted around 2030. Project economics are expected to be highly competitive, with reported development costs targeting approximately $20 per barrel of oil equivalent. As one of the largest and most advanced discoveries in the basin, Venus represents a potential cornerstone project for Namibia’s emerging offshore oil industry.
These developments, taken together, highlight the accelerating pace of activity and strategic capital allocation across the Orange Basin. Oregen believes that establishing positions in blocks with strong geological read-through to active discoveries and developments can create multiple pathways to value, including improved subsurface definition through ongoing regional drilling, increased strategic interest from larger operators, and potential future infrastructure and commercial synergies as Namibia’s first offshore developments progress.
In particular, progress toward a Venus sanction represents not only a major milestone for TotalEnergies, but also a potential catalyst for the broader basin, creating infrastructure and momentum that directly enhance the value of nearby blocks such as 2812Ab and 2712A.
The Company cautions that information in the “Orange Basin Industry Update” section above is derived from publicly available third-party disclosures. Nearby discoveries, development concepts, and activity levels are not necessarily indicative of the presence of hydrocarbons on Block 2812Ab and Block 2712A or the success of any future exploration on the Company’s interests.