1. Namibia: The Oil and Gas Activities and Hydrocarbon Potential Obeth Mbui Kandjoze Manager New Ventures & Promotion NAMCOR AAPG International Conference & Exhibition November 5-8, 2006 Perth Convention & Exhibition Centre • Perth, Australia

2. Talk Outline
Location
Onshore & Offshore Basins
Fiscal & Legal Regime
Database
Tectono-stratigraphic Development
Source rock development and maturity
Kudu Development
Licensing Status

3. Location
Windhoek
Perth

4. Onshore & Offshore Basins

5. Fiscal & Legal Regime Petroleum (Exploration & Production) Act, 1991
Petroleum (Taxation) Act, 1991
Petroleum (Exploration & Production) Amendment Act, 1993
Petroleum (Exploration & Production) Amendment Act, 1997 &1998)
Model Petroleum Agreement, 1998
Tax and Royalty System
Royalty 5%
PIT 35%
3 APT levels
APT1 set at 25% after IRR exceeds 20%
APT2 and 3 negotiable

6. Reconnaissance License
License Types
Reconnaissance License
Duration not exceeding 2 years
2 year extenstion, non exclusive
Exploration License
Not exceeding 4 years, Exclusive
1st and 2nd Two year extensions
Production License
Duration 25 years
10 year extension

7. Database Exploration started off 1970’s 33,000 km seismic acquired
Single well drilled 1974
Discovery of Kudu gas field in 1974
1980’s NAMCOR acquired seismic over Kudu
Kudu 2 and 3 drilled
Kudu 3 tested; 38 MMscf/day

8. To date 14 wells drilled offshore Now Seismic Database 2D Data
ECL 1989 –NAMCOR & Halliburton, a 10,600km 2D seismic offshore plus 3,770 km over Kudu
remains the core of data
Held 3 Lic. Rounds post 90’s
Now Open Lic. System
To date 14 wells drilled offshore
Now Seismic Database
2D Data
35000 km non-exclusive seismic
45000 km proprietary data
3D Data
1345 sq km proprietary
Aeromagnetic Data
Satellite Gravity
Surface Geochemical

9. Seismic & Well Database
1911/15-1
2012/13-1
1911/10-1
2815/15-1
Seismic & Well Database
14 wells drilled offshore Namibia
7 of these on or around Kudu
10 ODP/DSDP holes, mostly Neogene TD

10. Aeromagnetic & Satellite Gravity

11. Surface Geochemistry Data
Complements satellite radar slick studies
Proves existence of hydrocarbon systems offshore Namibia
only gas shows
isotopic analysis shows mature marine source rock

12. Tectonostratigraphy

13. Base Tertiary
Unconformity
Late drift
section
4. Cen./Tur. source rock
Early drift
3. Aptian source
Base drift
'sdr' sequence
2. Neocomian source rock
Syn-rift section
Base rift unconformity
Kudu
?SL SL
AJ-1 r ? SM ef
Submarine
Erosion gf
SL/SM
1. Artinskian source rock
Pre-rift section
Petroleum geology
Gas shows (RSA Orange basin)
Kudu with liquid component
Oil show/recovery (AJ-1, RSA)
Source rock intervals
rift faulting
extensional faulting
gravity faulting
Tectonic events
SM marine
SL lacustrine rf { P e m i a n E l y C t c o u s L T
Stratigraphy
Permo-Triasssic Karoo formation unconformable on basement.
The Karoo formation overlain by Lower Cretaceous synrift sediments, followed by a terrestrial-marine transition sequence and a thick marginal marine Upper Cretaceous drift section.
The Tertiary section dominated by marine claystones and silty claystones.

14. Two proven source rock intervals
Source Rocks
Two proven source rock intervals
Aptian-Albian
Turonian-Cenomanian
Marine, oil prone
High TOC values and significant HI”s

15. Aptian –Albian Source Rocks
DSDP 361
Kudu 9A-2
2815/15-1
Albian clastics
<1% TOC Type III
AE-1
Aptian (4100m-4776m)
2-3% TOC
KA-2
Albian (4500m-4700m)
>4% TOC
Apto-Albian (4800m-5100m)
PA-1
Aptian (1900m-2100m)
2% TOC
AF-1
Aptian HI >500g/kg
OA-1
Apto-Albian (3742m-3793m)
3% TOC (6-8kg/tonne) HI
AC-2
Albian (2650m-2700m)
Aptian (2900m-3100m)
Analysis shows dominantly
marine organic matter –
presently in the gas to dry
gas maturity stage
Layered anoxis Aptian shales with very high TOC, alternating marine and terruginous influence
>30kg/tonne
1911/15-1
Albian Carbonates
No source potential
2213/6-1
2313/5-1
2513/8-1
No evidence of Albo-Aptian source in shelfal wells (thin or absent)
Aptian-Albian (W1-W2) Source: Well penetrations

16. Cenomanian-Turonian SR
DSDP 530
2012/13-1
Good Oil prone source
2815/15-1
L. Cenomanian (1860m-2000m)
1-2% TOC (Gas Prone)
AE-1
L. Cenomanian (1600m-1700m)
3-5% TOC
AK-1
L. Cenomanian (2700m-2750m)
4% TOC
OA-1
Maastrichtian (2400m)
>4% TOC
1911/15-1
W3/4 Cenomanian-
Early Senonian
W4 source potential TOC 5-10%
The Cenomanian-Turonian interval has good to excellent source potential and where present & mature would be capable of significant oil generation over the Namibian Shelf
W4 source potential TOC up to 5%
2513/8-1
No source rock potential identified
Kudu wells – no source potential reported

17. Source Rock Correlation

18. KUDU Project Scheme Nampower Gas Sales Agreement US$ Kudu Upstream JV
Energy Africa Kudu Limited (90%)
Namcor (10%)
+ Partners
Kudu Power Station Company
Nampower (100%)
+ Partners (?)
Gas Sales Agreement
Nampower
Power Purchase Agreement
Domestic sales in Namibia
Eskom - export sales to RSA
Project critical hurdles:
currency risks
Eskom participation
allocation of project risks
US$
US$ or N$?
Upstream JDA offer:
minimal “fixed” return
no commodity pricing

19. LICENSE BLOCKS

20. National Petroleum Corporation of Namibia www.namcor.com.na
thank you !
National Petroleum Corporation of Namibia