Sintana Energy has signed an agreement to buy 44% of Maravilla Oil and Gas for N$105 million, which will give it a stake in an oil block located in the Walvis Basin.
The oil block is petroleum exploration licence 37, which was linked to the firing of previous mines and energy minister Natangwe Ithete last year.
Sintana made the announcement on Thursday, stating that the US$6.5 million (N$105 million) transaction includes US$3 million in cash and US$2.5 million in newly issued Sintana shares.
“The expansion of our Walvis Basin footprint positions us to participate in the next chapter of Namibia’s offshore success,” Sintana chief executive Robert Bose says.
Namibian businessman Knowledge Katti is a non-executive director of Sintana, with shares amounting to over 4% of the company, and also indirectly controls Maravilla.
The licence is currently owned by Paragon Oil and Gas, with Katti owning a controlling stake through Maravilla.
Sintana said the independent directors of the company consulted an advisor to determine that the acquisition price is fair and not influenced by the position of Katti in both the buying and the selling companies.
The oil block is next to Chevron’s licence 82, which the American oil major is planning on exploring next year.
