Big offshore oil deal

NAMCOR signs two Joint Operating Agreements with French gas and oil company Maurel & Prom Namibia S.A.S.

The National Petroleum Corporation of Namibia (NAMCOR) announced that it has signed two Joint Operating Agreements (JOA) with a French oil and gas company, Maurel & Prom Namibia S.A.S. on 13 December 2013, in Paris, France.
NAMCOR’s Managing Director Mr. Obeth Mbuipaha Kandjoze signed on behalf of the company, while the Chairman of Maurel & Prom Namibia S.A.S., Jean Francois Henin signed on behalf of his company. Other signatories included joint venture partner companies, Livingstone Mining Resource, represented by Didier Aynan, Frontier Minerals Resources CC, represented by Minlife Siyambango, and Azinam Limited, represented by Anthony R Mackewn.

Maurel & Prom Namibia S.A.S is the operator of Exploration License No 0044 and 0045 offshore Namibia in the Walvis Basin with a 37% participating interest for both licenses. NAMCOR on behalf of the Government of the Republic of Namibia is a partner in both licenses with a total of eight percent (8%) carried interest in each license. Joint Venture partner companies Azinam Limited has a 48% stake, Livingstone Mining Resource Development has 4%, and Frontier Minerals Resources has 3%.
Following the announcement, NAMCOR said Clause 14A of the Petroleum Agreement signed between the Joint Venture and the Ministry of Mines and Energy makes provision for NAMCOR’s participation in both exploration licenses.  It also makes provision for the operator to carry NAMCOR’s financial and technical liabilities in the project, in the exploration and development phases. These details are enunciated in the Joint Operating agreement (JOA), which governs the relationship between Joint Venture partners.
The main objectives of the JOA are to define the scope of joint operations, confirm participation interests and reservation of rights, as well as to establish a joint Operating Committee to do the following: a) authorize and supervise joint operations, b) provide for decision-making, c) designate an operator to conduct joint operations, d) set out rights and duties of operator and non-operators,  e) provide funding of joint operations, and f) transfer, withdrawal and dispute resolution and as well as to allocate benefits, costs and liabilities of joint operations.
This is the second JOA signed in a space of a week and half. NAMCOR concluded a similar agreement with Serica Energy Plc on 2nd December 2013, in Windhoek. Serica Energy Plc is the operator of block 2513 and 2512A offshore the Lüderitz Basin.
NAMCOR said it remains committed to have all the Joint Operating Agreements concluded and signed soon after the issuing of a license adding that “The company appreciates the level of commitment and co-operation demonstrated by license operators during the negotiations and Joint Venture Partners in getting this important accord signed.”