Sintana Energy is expanding its exposure to Namibia’s offshore oil industry after agreeing to acquire a 44% stake in Maravilla Oil and Gas for N$105 million ($6.5 million).

The investment gives Sintana an indirect 35% interest in Petroleum Exploration Licence 37, or PEL 37, a large offshore block in the Walvis Basin. Maravilla owns an 80% controlling stake in Paragon Oil and Gas, which holds the licence.

The deal comes as international oil companies step up exploration in Namibia, where recent discoveries in the Orange Basin have drawn major attention. PEL 37 sits next to PEL 82, where Chevron is preparing for further exploration activity.

Sintana said the transaction includes $3 million in cash and $2.25 million in newly issued company shares. Chief Executive Robert Bose said the deal would give the company a larger presence in the Walvis Basin.

“The expansion of our Walvis Basin footprint positions us to participate in the next chapter of Namibia’s offshore success,” Bose said.

Sintana targets a larger role in Walvis Basin

PEL 37 covers about 17,295 square kilometers offshore Namibia, with prospects identified in water depths of between 300 and 600 meters. The licence sits immediately north of PEL 82, where Sintana already has an indirect interest through its Namibian affiliate Custos Energy.

Chevron operates PEL 82 with an 80% working interest. The block has extensive seismic data, while earlier wells recovered light oil and confirmed an oil-prone source rock in the area. Chevron has indicated that it could drill an exploration well in 2027.

Knowledge Katti link draws attention

The transaction also involves Knowledge Katti, a Namibian businessman who is a nonexecutive director of Sintana and indirectly controls Maravilla. Sintana said its independent directors consulted an adviser to assess the transaction and determine whether the purchase price was fair.

The deal follows earlier scrutiny around PEL 37. The licence was previously linked to the dismissal of former Namibian mines and energy minister Natangwe Ithete, adding attention to Sintana’s latest investment in the block.

Sintana Energy’s Namibia portfolio

Sintana Energy is a Canadian-listed oil and gas exploration company with interests in Namibia, Uruguay, The Bahamas and Trinidad and Tobago. In Namibia, its portfolio includes interests in several offshore and onshore exploration licences.

The Maravilla investment gives Sintana another position in the Walvis Basin and places it closer to exploration activity that could help determine the region’s oil potential.