1. Managing Director of NAMCOR
NAMCOR ‘s participation in the oil and gas sector in Namibia and beyond
Presented by
Mr Sam E. Beukes
Managing Director of NAMCOR
March 22, 2007
Exploring & Fuelling Namibia
Robert Mwanachilenga - National Petroleum Corp of Namibia

2. Presentation Outline Location Map Country Background Information
Vision and Mission Statements
What are the drivers of this strategy?
Oil and Gas Exploration History
Upstream Business Activities
Current Licensing Situation
Acreages with NAMCOR shareholding
New Strategic Direction
(i) New Government Mandate
(ii) License Under Application
Joint Acquisition of new Spec seismic
Support for expansion drive
Robert Mwanachilenga - National Petroleum Corp of Namibia

3. 1. Location Map Namibia Key Figures Land Area: 825 418 km2
Population: million (2005 est.)
GDP per capita: $2000
Coastline: km
Life Expectancy: 44 years
Robert Mwanachilenga - National Petroleum Corp of Namibia

4. 2. Country Information Country Information
Robert Mwanachilenga - National Petroleum Corp of Namibia

5. 3. Vision and Mission Statements
Our Vision
To be a world-class petroleum organisation providing sustainable benefits to all stakeholders.
Our Mission By
* ensuring Security of Supply, through upstream and downstream operations;
* harnessing innovative industry best practices;
* proactively embracing international safety, health and environmental protocols;
* recruiting and retaining high performing, passionate and competent people.
Robert Mwanachilenga - National Petroleum Corp of Namibia

6. 4. What are the drivers of this strategy?
A strong drive and support from the principal shareholder for the company to become a fully fledged exploration and production institution
Volatility of prices of crude oil on the international market
Increasing importance of the security of supply of both crude oil and refined petroleum products for the country
A new and a compelling mandate from the principal shareholder for the company to seek E & P and Downstream business both locally, regionally and internationally
A strong growth of the company’s portfolio of businesses
Strong advocacy from the shareholder for financial self sufficiency and commercialisation
Robert Mwanachilenga - National Petroleum Corp of Namibia

7. 5. Oil and Gas Exploration History
Initial Oil & Gas exploration started in the 1970’s
Kudu Gas Field Discovery 1974 is a direct result of exploration activities in the 1970’s
Discovery was made by Chevron Oil Co., Regent Petroleum & Soekor (PetroSA)
With independence in 1990 several licensing rounds were held
1st, 2nd , 3rd and 4th Licensing Rounds were
Rounds produced a mixed mixture of results, i.e. success and failure
A total of 14 wells were drilled in this period offshore alone
Country has coastal length of 1572 km
An extensive 2D and 3D database been build over the years
Country is hugely underexplored
Robert Mwanachilenga - National Petroleum Corp of Namibia

8. Cont’d
E&P laws in Namibia do not enforce the participation of the national oil company
NAMCOR’s participation (carried basis) has been purely a matter of business discussions between the operator and ourselves
Robert Mwanachilenga - National Petroleum Corp of Namibia

9. 6. Upstream Exploration Activities
(a) Current Licensing Situation - 13 licenses 05/06
Robert Mwanachilenga - National Petroleum Corp of Namibia

10. (b) Acreages were NAMCOR has shareholding
Block 2814A (Kudu Gas Field)
Hunt License Area (Luderitz Basin)
Block 1711 (SinteznefteGAs)
Owambo Basin License (Circle Oil)
Blocks 2813A, 2824B, 2914A (BHP Billiton)
Blocks 2416B, 2417 (INA Industrija Nafte)
Robert Mwanachilenga - National Petroleum Corp of Namibia

11. Tullow Oil – Kudu Gas Field (Block 2814A)
NAMCOR has 10% working interest
NAMCOR will participate in drilling campaign
2 Exploration Wells to be drilled end of Q1,2007
Robert Mwanachilenga - National Petroleum Corp of Namibia

12. Seismic interpretation being done in London, UK offices
Hunt Oil Company
NAMCOR 10% carried
Seismic interpretation being done in London, UK offices
Robert Mwanachilenga - National Petroleum Corp of Namibia

13. Sintezneftegas – Block 1711
Acreage with highest potential both oil and gas
NAMCOR has 7% carried
Partners in Block are:
SinteznefteGaz 70%
PetroSA 10%
EnerGulf 10%
NAMCOR 7%
BEE 3%
Drilling of 1st well is planned for 2007
Robert Mwanachilenga - National Petroleum Corp of Namibia

14. Circle Oil – Owambo Basin
FAOC assigned its interest to Circle Oil Namibia
NAMCOR has 10% carried interest
EnviroDynamics presented Draft EIA report to MME & NAMCOR
Seismic survey is planned to start after the rainy season (end of May 07 through to Nov 07)
Robert Mwanachilenga - National Petroleum Corp of Namibia

15. BHP Billiton – Blocks 2813A, 2824B, 2914A
Completed 3D Seismic Survey in April 2006
Acquired 1492 sq. km survey
BHP Billiton completed Farm Out process
New partners: Mitsui Corporation of Japan and PetroSA of South Africa
Currently interpreting acquired seismic
Potential carried participation for NAMCOR
Robert Mwanachilenga - National Petroleum Corp of Namibia

16. INA Industrija Nafte – Blocks 2416B, 2417 EIA has been completed
NAMCOR is discussing participation in the license
Hungarian NOC expressed interest in license
Seismic acquisition is to start mid April 2007
Robert Mwanachilenga - National Petroleum Corp of Namibia

17. (c) New Strategic Direction
New Government Mandate
(ii) New License under application
Robert Mwanachilenga - National Petroleum Corp of Namibia

18. (i) New Government Mandate
NAMCOR must actively seek ways and means to become a fully fledged Exploration and Production company
NAMCOR must become involved in oil and gas exploration activities in the country (hence the application for the Ondjou Block)
NAMCOR must venture outside the country and get involved in joint venture exploration and production activities, be it exploration and/or acquisition of equity in producing assets and so on
Company signed MoU with PetroSA (RSA) & ENH (Moz): joint exploration and development of oil & gas opportunities in region
Planning visits to Tanzania and Kenya to explore further business opportunities in East Africa
Robert Mwanachilenga - National Petroleum Corp of Namibia

19. (ii) New License under application
Ondjou Prospect – Block 2011B and 2111A
NAMCOR submitted application for the block
March 26-27, 2007 license negotiation meeting with Ministry
Proposed Work program
Desktop studies of existing data
Reinterpretation of existing 2D data
AVO analysis: evaluation of lithology and fluids
Electromagnetic Survey to determine source maturity and presence of reservoir
Acquire 3D data if required
Looking for technical partnership to share drilling risks
Robert Mwanachilenga - National Petroleum Corp of Namibia

20. (d) Planning acquisition of new Spec Seismic
In order to keep the exploration momentum of 2005/2006 the company is planning:
An extensive review of the of the exploration potential of the Namibian margin
An expansion of the demarcation of the blocks further into the deepwater section
A spec seismic acquisition program in areas with potential but previously not covered by existing surveys.
A consolidation and packaging of all datasets with the view to enhance and keep exploration interest high.
Robert Mwanachilenga - National Petroleum Corp of Namibia

21. 7. Support for this expansion drive
NAMCOR Downstream Business
Healthy Balance Sheet
Through Strategic Partnership
Robert Mwanachilenga - National Petroleum Corp of Namibia

22. Exploring & Fuelling Namibia
Exploring & Fuelling Namibia
Thank you
Robert Mwanachilenga - National Petroleum Corp of Namibia