US$84 million earmarked for oil exploration

Russia's Sintezneftegaz ZAO plans to spend US$84 million on oil exploration activities in Namibia over a four-year period, the Permanent Secretary in the Ministry of Mines and Energy, Joseph Iita said in a statement this week.

The petroleum agreement with the government for an exploration license over an area known as block 1711, which is off-shore near the Angolan border, was due to be signed on March 31 in the capital, as the Economist went to press. Iita said Sintezneftegaz will drill a well in the second year of their license. The Russian firm was also expected to spend US$1 million on training Namibians who will work on the project, Iita said.

Sintezneftegaz is part of the SINTEZ Group that incorporates a number of companies specialising in oil production, exploration, processing and transportation. “Block 1711 is arguably the most prospective area in Namibia so far, with a potential for a large oil discovery,” said Iita.