Namibian homegrown E&P firm Trago Energy Pty Ltd, a wholly-owned subsidiary of Custos Energy (Pty) Ltd., has entered into an agreement with Chevron Corporation, in respect of its 10% participating interest in Petroleum Exploration License 90 (PEL 90).
PEL 90 is located offshore Namibia in the Orange Basin and covers an area of approximately 5,433 km². The licence is operated by Chevron.
The agreement provides for the transfer of all of Trago’s participating interest in PEL 90 to Chevron, in exchange for $11Million in cash at completion and further contingent consideration payable on the achievement of appraisal and production milestones, including the revenues associated with commercial production currently estimated to be between 1.5 and 2.5Million barrels of oil (dependent upon commodity price assumptions.)
“Chevron has been buying and selling equity in PEL 90 in the last four years. The American major returned to Namibia for the Orange Basin Rush in late 2022, several months after Shell’s basin opening discovery. It acquired 80% of the acreage from Trago. In December 2024, Chevron reached an agreement to transfer a 27.5% working interest to Qatar Energy, reducing its stake to 52.5%.”
The transaction provides Trago, through the contingent consideration with ongoing exposure to the significant prospectivity and upcoming activities on PEL 90, including the Nabba-1X exploration well, while eliminating Trago’s funding and capital risk.
Completion of the transaction remains subject to governmental, regulatory and third-party approvals. Following completion, Trago will no longer hold a participating interest in PEL 90 and will have no further obligation to fund its share of costs on the licence, including the Nabba-1X exploration well.
Chevron has been buying and selling equity in PEL 90 in the last four years. The American major returned to Namibia for the Orange Basin Rush in late 2022, several months after Shell’s basin opening discovery. It acquired 80% of the acreage from Trago. In December 2024, Chevron reached an agreement to transfer a 27.5% working interest to Qatar Energy, reducing its stake to 52.5%.
Chevron drilled the disappointing Kapana-1X exploration well on the asset, reaching its target depth in January 2025 and plugging the probe as a dry hole after failing to encounter commercial quantities of hydrocarbons.
In August 2026, Chevron sold a 17.4% participating interest in PEL 90 to Equinor.
Equinor acquired the stake through an agreement signed in August 2026. This has not been approved by regulators. It would have reduced Chevron’s stake from 52.5% to 35.1%. Chevron has now acquired-again pending regulatory approval- the entire 10% that Trago holds.
“Adjusted for recently announced, but as yet uncompleted, farm-out to Equinor and prior to adjustment for Trago’s interest exchange, the PEL 90 participants include Chevron (35.1% interest) Qatar Energy (27.5%), Equinor (17.4%), the National Petroleum Corporation of Namibia (10%) and Trago (10%). No reserves or resources have been attributed to PEL 90”.
Chevron will then be holding 45.1% operated interest in PEL 90 after regulators have approved its 17.4% sale to Equinor and 10% acquisition from Trago.
