Canadian firm, Sintana Energy, inks deal with locally-owned Crown Energy, pledging community investment
By Michel Haoses.
Canadian oil and gas company Sintana Energy has struck a deal with Namibian-owned firm Crown Energy, a significant move to bolster local participation and community development in the local oil and gas industry.
The agreement entails the acquisition of 67% of the issued and outstanding shares of Giraffe Energy Investments, with 8% of common equity slated for contribution to a community trust facilitated by the Knowledge Katti Foundation.
This revelation surfaced in a statement released on 25 April by the APO Group on behalf of the African Energy Chamber (AEC).
Sintana Energy is slated to initiate the acquisition with a 49% purchase of Giraffe’s shares for $2 million in cash. Over the subsequent five years, Sintana Energy retains the option to increase its stake to 67% with an additional $1 million cash payment.
The equity contribution, routed through the Knowledge Katti Foundation and Sintana Energy, aims to unlock benefits for local communities, fostering direct opportunities and bolstering local participation in the oil and gas sector. Initially concentrated in the Erongo region, this initiative is poised for expansion into other regions like the Karas Region.
Knowledge Katti, Director of Sintana Energy, remarked, “Namibia demonstrates time and time again that it is the market of choice for frontier Exploration and Production players. This represents a crucial opportunity for the domestic market to seize partnerships and help drive the industry forward. Through the equity contribution, we hope to empower local communities while ensuring they reap the highest rewards of the oil and gas industry.”
The AEC views this as a pivotal step in unlocking Namibia’s deepwater acreage’s full potential and lauds Katti for directing resources towards community development initiatives, shaping the narrative of the oil and gas sector.
NJ Ayuk, AEC Executive Chairman, commended the Knowledge Katti Foundation for its engagement with local communities and its emphasis on their contribution and role in the project, highlighting a fresh approach to community involvement and empowerment.
Partnering with Quantum Xploration for the acquisition, both Sintana Energy and Quantum Xploration are poised to collaborate closely with NAMCOR, to explore and develop PEL 79, marking a significant stride towards harnessing the country’s energy resources for sustainable growth and development.
