Canadian oil and gas company Reconnaissance Energy Africa (ReconAfrica) is leading exploration in the Kavango Basin, where it has confirmed the presence of an active petroleum system already in its first stratigraphic test well. With a 90% interest in PEL 73, ReconAfrica would obtain a 25-year production license if it makes a commercial discovery. Energy Capital & Power spoke with Chief Geologist Dr. Ansgar Wanke about the development potential of the basin – which could hold up to 30 billion barrels of oil – and the latest technologies shaping the exploration industry.
How has 3D seismic and other exploration technologies improved how the industry evaluates development potential?
In an offshore environment, 3D seismic has become a must before drilling. With the new processing algorithms, as well as the improved acquisition devices technology and so on, the subsurface imaging has evolved significantly, which helps seismic interpreters to identify and de-risk prospects much better now. Once you have good seismic imaging, then you can explore 3D seismic in terms of looking at specific amplitude responses, wavelet shapes and other characteristics to get better, more accurate indications of hydrocarbons associated with reservoirs. For example, one classical tool is to look at the amplitude versus offset (AVO), which once calibrated and refined with good rock physics, can serve as a direct hydrocarbon indicator. Advanced AVO studies have probably contributed to the success of the recent discoveries by Shell and TotalEnergies.
What does a just African energy transition look like to you?
Diversified energy mixes are important because this is where the world is heading. Africa should not be left behind – and while it should first develop its hydrocarbon and fossil fuel resources – it should also move with the rest of the world towards renewables. Why are fossil fuel resources relevant? We still have a resource gap. Even under various scenarios, ranging from a progressive, to moderate, to slow energy transition, there will still be an energy supply gap. To fill this, not even the existing reserves are enough. So, there is a need to find additional reserves. That is quite clear, and therefore, oil and gas – and especially gas – will play an essential role for the next couple of decades globally.
In terms of the transition timeline, there are too many variables: oil prices, global demand, the actions of OPEC, how fast renewable energy projects are materializing, and so on. The pandemic was not predicted, for example. Apart from this, there are several economic factors: how China’s demand will grow, how the U.S. economy moves away from a recession, how Europe may move into a recession. It is dramatic.
As an affiliate to the University of Namibia, how do you see academia and public institutions working together to build local capacity?
In terms of training programs, academic and public institutions should create a common platform, which doesn’t exist yet in Namibia. So far, the Petroleum Training and Education Fund (PETROFUND) has served as this platform, but it has its limitations. A common platform should be more general and not specific to one funding organization. I would suggest that the Namibia Petroleum Operators Association, which is still small and relatively young, plays a bigger role.
What role will ReconAfrica play in Namibia’s hydrocarbons sector over the next decade?
It depends on if or when we make a discovery. There are diverse options that are relatively easy and fast to develop in case of success. In general, the onshore location of ReconAfrica’s acreage and the presence of good roads and a major powerline gives many options for development. For example, the production of gas for feeding a local gas-to-power plant is an attractive scenario. The power could be distributed via the nearby Trans-Caprivi powerline, while hydrocarbon fluids could be transported by road and rail for export to Walvis Bay. When you look at Namibia’s model petroleum agreement, royalties and open licensing system, the fiscal climate is very friendly and welcoming. We hope that it continues like this indefinitely.
Energy Capital & Power is a strategic partner of the Namibia International Energy Conference (NIEC) – taking place in Windhoek on April 23-25, 2024. The 6th annual conference unites industry leaders, business executives and policymakers to engage in dialogue, exchange ideas, create new partnerships and identify strategies to foster a prosperous energy industry in Namibia and beyond. For more information, please visit https://www.nieconference.com/
