ATLANTIC MARGINS PRESENTATION OUTLINE 1. NABIRM CORPORATE PROFILE - - PowerPoint PPT Presentation
PETROLEUM EXPLORATION AND POSSIBLE PRODUCTION OPPORTUNITIES FOR THE LICENSE 0058 COVERING BLOCK 2113A WALVIS AND HUAB BASINS, NAMIBIA, SOUTH ATLANTIC MARGINS PRESENTATION OUTLINE 1. NABIRM CORPORATE PROFILE 2. NAMIBIA AT GLANCE 3. FISCAL
Petroleum Agreement with the Namibian Government on May 8, 2012. The License is 90% held by NABIRM Energy Services (PTY) LTD a Namibian registered company with a focused interest energy sector including petroleum Resources development.
focused on oil prospecting, exploration, and petroleum.
services company focused on maximizing the value of its global assets portfolio.
Services (Pty) Ltd is an affiliate and subsidiary company of the Masada Resource Group (MRG)
The overall strategic exploration model for the proposed hydrocarbon search in Block 2113A target the following:
Basins;
setting of the basins margins with potential structural trap / reservoirs;
as potential sources and reservoirs rocks. The overall exploration strategy will focus on the Walvis and Huab Basin evaluations and active petroleum systems through the evaluation of existing historical data sets and acquisition of 2D / 3D seismic data on key selected site- specific targets leading to drilling and petroleum discovery.
Situated on Africa’s south- western seaboard Stable Democracy with population of 2.1 million people (2011) Modern legislative framework with good tenure security One of the lowest political risk jurisdictions in Africa Capital city is Windhoek BBB Country Risk Profile (The Economist, 2010) GDP of 14.64 billion USD (2010) Per Capita $6,900.
systematic Environmental Approach;
There are three principal components in the fiscal package:
the rate was 12.5%). In special circumstances, the Minister may defer, remit or refund Royalty due, upon application made by the holder of a production licence;
35% of taxable income. (Until 1998, the rate was 42%), and;
petroleum operations in a Licence Area earn an after-tax real (i.e. inflation- adjusted) rate of return of 15%. The second and third tiers of APT become payable once the profitability level exceeds 20% and 25% respectively.
The Fiscal Terms are supplemented by the provisions of the Model Petroleum Agreement, 1998, these three fiscal elements are framed in modern legislation, which has been specially formulated for the international oil industry and the following must also be noted:
bonuses;
petroleum operations (e.g. fuel being an example of an exception);
Shareholders' Tax; and
requirement for State (NAMCOR) participation.
Inline with standard international practice, license application fees, annual license area rental charges and annual training sums are payable in addition to the main fiscal impositions. Annual License area rental charges (which are deductible in the computation of PIT and APT, and are not indexed to inflation) are as follows:
during the first 4 years (and any discretionary extension period);
held during the next 2 years (and any discretionary extension period);
held during the subsequent 2 years (and any discretionary extension period);
held during any third renewal period;
held.
and negotiable) minimum annual amount specifically on the training of Namibians in petroleum and petroleum-related matters.
Petroleum Laws Amendment Act, 1998, licensees will be required (as from the date when half of the estimated petroleum reserves have been produced) to make annual contributions into decommissioning trust funds. These annual contributions will be deductible in the computation of taxable income for both PIT and APT.
which sets out the Royalty (as well as the level of application fees and annual area rental charges).
PIT and APT.
1993 (Act 2 of 1993): to amend the Petroleum (Exploration and Production) Act, 1991, so as to provide for training programmes and contributions to the Petroleum Training and Education Fund;
introduces a number of specific new incentives for Third Round licensees.
safety and welfare of persons employed, and protection
resources.
Environmental Management Act (2007) Water Resources Management Act, 2004 Other laws, regulations and policies.
Foreign Investment Act, 1990 (Act No. 27 of 1990); Competition Act, 2003 (Act No. 2 of 2003); Anti-Corruption Act, 2003 (Act No. 8 of 2003); Affirmative Action Act, 1998 (Act No. 29 of 1998).
OFFSHORE TARGETS (WALVIS BASIN)
Clastics and Turbidites and lower Cretaceous Carbonates ONSHORE TARGETS (HUAB BASIN)
to Basin margin setup;
formation and tight shale for Coal Bed Methane Opportunities.
A) B)
Modified from Davison, 2005 Source: Schmidt, 2004
Very good correlation between the hydrocarbons
the margins. Modern geochemical analysis to Kunene-1 exploration well has evidenced the presence of
fingerprints (geochemistry) to those present in Campos basin
Source: Schiefelbein et al., 1999
Source: Ministry of Mines and Energy, 2012
License 0058 (Block 2113A), in NW Namibia and formed a connected basin with the Paraná throughout Karoo times (late Palaeozoic) into the Lower Cretaceous
clear evidence of a larger, lacustrine Karoo basin in the west.
eastward-projecting bay of the Paraná Basin of Brazil during Gondwana times.
valley in the east, which then spreads out into the broad Huab Basin further west.
facies change occurred from deposits in shallow-water conditions.
System Group Formation Early Cretaceous Etendeka Group Etendeka lava field Twyfelfontein Formation Jurassic Karoo Supergroup West East Triassic Krone Upper Permian Ecca Group Gai-as Lower Permian Rino Wash Gudaus Probeer Tsarabis Verbrande Berg Carboniferous Dwyka Group Not sub-divided
Source: Horsthemke et al., 1990
Source: Horsthemke et al., 1990
Initial Exploration Period 2012 – 2016
Minimum exploration expenditure US$ 6 million First Renewal Exploration Period 2016 – 2020
undertake includes shooting a 1000 sq.km (3D) seismic survey and 150 sample points for geo chemical analysis and the drilling of an exploration well. The 3D survey area will be determined by the results of the 2D survey. Minimum exploration expenditure US$ 45 million Second Renewal Exploration Period 2020 – 2024
analysis and the drilling of exploration or appraisal well if necessary.
Overall, Namibia's offshore and onshore areas inclusive
Block 2113A holds great exploration opportunities that can lead to a successfully and rewarding petroleum discovery. Good quality sandstone reservoirs are likely to be distributed widely, and a number of prospective structural and stratigraphic traps have been identified from historical seismic survey and some have been confirmed from historical and ongoing drilling operations. OVERVIEW
North Sea, USA and the Campos Basin of Brazil confirm their commonly high porosities (20% +) and significant thicknesses (200 m +) in addition to high recovery factors.
potential prospects to be delineated in the License 0058 covering Block 2113A. According to the modern available existing geochemical data (results of geochemical analysis of condensate samples from Kudu field, and oil extracts from several Offshore Namibian wells, offshore Namibia holds at least two active petroleum system and these are:
cracked, very mature condensate hydrocarbons sourced by a lacustrine saline, alkaline calcareous black shale source rock system deposited in a lacustrine brackish to saline anoxic depositional environment. This source rock system is also present in the Campos and Santos Basins in Brazil and Congo and Cuanza Basins, in Angola. In Brazil and Angola such system is
hydrocarbon reserves
in the early/oil window stage, sourced by Albian-Cenomanian, marine calcareous mudstone source rock system, deposited in an anoxic depositional environment. Such system is identical to the Albian source rock system present in the Campos, Santos, Cuanza and Congo Basins in offshore Brazil and Angola, respectively.
billion barrels of original oil in place (OOIP). The mean prospective resources are of about 42.6 billion barrels of oil and 128.8 Tcf (3.6 T cubic meters) of gas prospective resources. This result could locate
container in West Africa coast.
The Huab Basin is a thermal sag basin and encompasses nearly 16000 km2 within its onshore portion and covered by the License
rifting in eastern Africa from the Late Palaeozoic to Early Mesozoic
License 0058 areas and they have the potential to act as hydrocarbon traps and/or conduits, and to promote fracture permeability. They are among the key basin margin structural features that are key to unlocking the hydrocarbon potential of the Walvis Basin and indeed that of the License 0058 covering Block 2113A. The Huab Basin presents the hydrocarbon exploration opportunities: Basin margins associated with the Huab Basin and its potential continuity and linkage with the Walvis Basin Offshore, and; Onshore structural features associated with the regional geological setting of the basins margins with potential structural trap / reservoirs as well as the millions of years accumulated geological sediments as potential sources and reservoirs rocks.
NABIRM Energy Services (PTY) Ltd
Erastus Shapumba Towers 3rd Floor Unit No. 3002 Ausspanplatz WINDHOEK NAMIBIA Tel: +264 (61) 229187 Fax:+264 (61) 253521