1. AAPG International Conference & Exhibition
12 – 15 September 2010
Calgary, AB. Canada
An Update on the Namibia Oil and Gas Exploration Sector
Victoria Sibeya
Geoscientist
Robert Mwanachilenga - National Petroleum Corp of Namibia

2. Presentation Content Introduction Fiscal and Legal Terms
License Activity
Exploration History
Namibian Basins and Data Coverage
Exploration opportunities
Summary
Robert Mwanachilenga - National Petroleum Corp of Namibia

3. Introduction
Robert Mwanachilenga - National Petroleum Corp of Namibia

4. Country Information Government type: Republic Capital: Windhoek
Independence: 21 March 1990
Population: 2.1 million (2007 est.)
Area: km2
Coastline: km
GDP : US $15 billion (2009)
Corporate income tax rate: 35%, Value added Tax (VAT) 15%
Robert Mwanachilenga - National Petroleum Corp of Namibia

5. Legal
The Petroleum (Exploration and Production) Act of 1991 and amendments,
The Petroleum (Taxation) Act of 1991, and amendments
The Petroleum (Regulations) Act of 1991
4. The Petroleum Agreement – between the Government and Operator
Robert Mwanachilenga - National Petroleum Corp of Namibia

6. Fiscal The three Main Components of the Namibian Fiscal Package are:
Royalty
Rate 5% of Market Value of Oil & Gas Produced.
Petroleum Income Tax (PIT)
Rate 35% of Taxable Income
The Additional Profits Tax (APT)
Incremental 3-tiered Tax Based on project IRR.
First additional tax rate is determined by a formula in the Act.
2nd and 3rd Tax Rates are negotiable.
Robert Mwanachilenga - National Petroleum Corp of Namibia

7. Fiscal…….. Fees/charges
- License Application Fees (N$ 3,000 to N$ 30,000),
- Annual License Area Rental Charges, (N$ 60/km2 for Exploration Licenses till N$ 1,500/km2 for Production Licenses).
- Annual training sums – biddable and negotiable.
1 USD ≈ N$
September 13, 2010
Robert Mwanachilenga - National Petroleum Corp of Namibia

8. Fiscal…..
- Decommissioning Trust Fund (as of 1998 Petroleum Laws Amendment Act) payment into escrow account from date when ½ estimated reserves are produced.
- PA: Standard Petroleum Agreement model:
- modern accounting procedure;
- detailed valuation based on fair market pricing principles
- Bank and Performance Guarantee, etc.
Robert Mwanachilenga - National Petroleum Corp of Namibia

9. Fiscal - No signature, discovery or production bonuses
Most items needed for petroleum operations can be imported duty free (Fuel is not duty free, but rebates are available upon application)
Non-resident shareholders tax - oil companies exempted
Robert Mwanachilenga - National Petroleum Corp of Namibia

10. License activity Historic post-independence 1990 - 2009
Robert Mwanachilenga - National Petroleum Corp of Namibia

11. Current Licenses Current Licensees 2 Reconnaissance 10 Exploration and
1 Production
Robert Mwanachilenga - National Petroleum Corp of Namibia

12. Exploration History Onshore
First Well Drilled in 1928 (Berseba, Nama Basin)
Two Further Wells drilled in the Nama Basin by Artnell (1963) and Elf (1971)
ST-1 Drilled in Owambo Basin by Etosha Petroleum in 1959
Three Further Wells Drilled in the Owambo Basin by Etosha Petroleum
OPIC Gets Etosha Petroleum Concessions and Drills OPO-1 in the 1990’s
Offshore:
Kudu 9A-1 Drilled in 1974 – Discovery Well for Kudu Gas Field
7 Further Wells Drilled in Kudu Gas Field
Exploration Waned Until the First Licensing Round in
Five Operators Were Awarded Licenses
NAMCOR Acquires Aeromagnetic Data For Offshore Namibia in 1998
Underexplored – A Lot of Opportunity!!!
Robert Mwanachilenga - National Petroleum Corp of Namibia

13. Namibian basins
Robert Mwanachilenga - National Petroleum Corp of Namibia

14. Data – Geology

15. Data – Seismic Coverage
Robert Mwanachilenga - National Petroleum Corp of Namibia

16. Data - Wells Total 16, 8 in the Kudu field
Robert Mwanachilenga - National Petroleum Corp of Namibia

17. FARM-IN OPPORTUNITIES- WALVIS BASIN (ONDJOU)
RESERVOIR: Shallow marine to continental sands
SEAL: Deep marine shales
CHARGE: Drains multiple sources
UNRISKED P50 RESERVES: 913
MMbbls (Expectation: 185 MMbbls)

18. FARM-IN OPPORTUNITIES- LUDERITZ BASIN
Summary of the license block:
The license block is located in the Luderitz Basin.
Ownership = 100% NAMCOR
Total area of the licence block is about 38,214 km2.
Prospect A: Large 4-way dip closed structure
Prospect B: Large 4-way dip closed structure with reservoir indicators.
Lead G: Kudu look alike
Down cutting distributary/fan system in upper Cretaceous & Tertiary.
Extensive Toe-thrust system in the south of the block.
Multiple direct and indirect hydrocarbon indicators.

19. SUMMARY - Good Fiscal and Legal Regime
- Definite Increase in Exploration Activity
- Focus on both Onshore & Offshore Basins
- New Data Acquisition Campaigns Planned for
- Very Low Well-Basin Density
- Namibia Still Very Much Underexplored!!
Robert Mwanachilenga - National Petroleum Corp of Namibia

20. Thank You!
Please come visit us at booth nr. 629