10% carry-free interest in oil beneficial - Uanguta
Interim MD of the National Petroleum Corporation of Namibia (Namcor) Ebson Uanguta said that the entity's 10% carry-free interest is adequate for generating wealth for the State, but he acknowledged that the government could negotiate for a larger stake in its oil blocks.
Uanguta made the remarks during a briefing into the activities of the national oil and gas company at the government information centre earlier today, adding that while it was desirable that Namcor could have negotiated for far bigger shareholding, it was not adequately capitalised to venture into oil and gas exploration.
“Of course we are not entirely happy with the 10% and discovering an operation is an expensive exercise. Imagine, to drill just one well costs about U$100 million or N$1.8 billion, and you are not guaranteed to find hydrocarbons,” Uanguta said.
Uanguta made the remarks during a briefing into the activities of the national oil and gas company at the government information centre earlier today, adding that while it was desirable that Namcor could have negotiated for far bigger shareholding, it was not adequately capitalised to venture into oil and gas exploration.
“Of course we are not entirely happy with the 10% and discovering an operation is an expensive exercise. Imagine, to drill just one well costs about U$100 million or N$1.8 billion, and you are not guaranteed to find hydrocarbons,” Uanguta said.
