BP and Partners Announce Major Gas Condensate Discovery in Namibia’s Emerging Orange Basin Energy Province

BP, one of the world’s largest integrated energy companies, has confirmed the preliminary results of the Volans-1X exploration well in Namibia’s Orange Basin, marking another significant milestone in what is rapidly emerging as one of Africa’s most promising new petroleum provinces. The discovery, as reported by operator Rhino Resources, represents the third major hydrocarbon find in 2025 for the partnership and adds to growing evidence that Namibia’s offshore waters contain substantial recoverable reserves.

The confirmation of hydrocarbon discoveries in the Orange Basin has positioned Namibia as an emerging hotspot for international oil and gas exploration, attracting major energy companies and significant capital investment to a country that, until recently, had no commercial oil production. The discoveries are transforming Namibia’s economic outlook and raising expectations that the southern African nation could join the ranks of oil-producing countries within the next decade.

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Volans-1X Well Details and Geological Significance

Petroleum Exploration License 85 (PEL85), where the Volans-1X well was drilled, is operated by Rhino Resources with a working interest of 42.5 percent. The license area is located in the deepwater Orange Basin, which straddles the maritime boundary between Namibia and South Africa and has become a focal point for exploration activity following several high-profile discoveries in recent years.

The partnership structure for PEL85 reflects a combination of international energy majors, regional players, and national interests. Co-venturers include Azule Energy with a 42.5 percent working interest, NAMCOR (the National Petroleum Corporation of Namibia) holding 10 percent, and Korres Investments with 5 percent participation. BP maintains a strategic position in the project through its 50 percent interest in Azule Energy, a joint venture established between BP and Eni to consolidate their oil and gas activities in Angola.

The Volans-1X exploration well was drilled using the Northern Ocean’s semi-submersible drilling rig Deepsea Mira, a sixth-generation deepwater drilling unit capable of operating in water depths up to 3,600 meters. The well reached a total depth of 4,497.5 meters TVDSS (true vertical depth subsea), successfully penetrating the Upper Cretaceous target formations that have proven productive across multiple discoveries in the Orange Basin.

The geological targets in the Orange Basin consist primarily of Upper Cretaceous deepwater turbidite sandstones deposited in submarine fan systems. These reservoir rocks were formed during a period of significant sediment delivery from the African continent during the breakup of Gondwana and the opening of the South Atlantic Ocean. The depositional environment created extensive, high-quality reservoir sandstones that have excellent porosity and permeability characteristics.

Encouraging Reservoir Characteristics and Fluid Properties

The Volans-1X well encountered 26 meters of net pay in rich gas condensate-bearing reservoirs, a result that exceeded pre-drill expectations and confirms the presence of commercial quantities of hydrocarbons. The reservoir exhibited excellent petrophysical properties, including high porosity and permeability, which are critical factors in determining the commercial viability and production potential of any discovery.

Significantly, the well did not encounter a water contact within the drilled interval, suggesting that the hydrocarbon column may extend deeper than the current well penetration and that additional resources could be confirmed through future appraisal drilling. The absence of an observed water contact is a positive indicator that often leads to upward revisions of resource estimates as additional data is gathered and geological models are refined.

Initial laboratory analysis of two reservoir samples provided important insights into the fluid characteristics and commercial potential of the discovery. The analysis indicated a high condensate-to-gas ratio (CGR) of greater than 140 barrels per million standard cubic feet of gas, with liquid density of approximately 40 degrees API gravity. This fluid composition is particularly favorable from a commercial perspective, as gas condensate contains valuable liquid hydrocarbons in addition to natural gas.

Gas condensate, also known as natural gas liquids, represents a premium hydrocarbon product that commands higher prices than conventional natural gas while being easier and less expensive to develop than heavy crude oil. The high API gravity of approximately 40 degrees indicates a light, high-quality condensate that will yield valuable products when refined and requires minimal processing compared to heavier crude oils.

The preliminary results are currently undergoing further evaluation through additional laboratory testing, geological modeling, and engineering studies to better understand the extent of the discovery, estimate recoverable resources, and develop concepts for potential commercial development. This evaluation process typically takes several months and may include plans for appraisal wells to delineate the extent of the accumulation and gather additional reservoir data.

Orange Basin Emerges as Major Exploration Province

The Volans-1X discovery represents the latest in a series of significant hydrocarbon finds in the Orange Basin that have transformed perceptions of the region’s petroleum potential. The basin, which remained largely unexplored until recently due to its challenging deepwater environment and distance from existing infrastructure, has emerged as one of the world’s most active exploration frontiers.

The Orange Basin gained international attention following Shell’s Graff discovery in 2022 and the subsequent TotalEnergies Venus discovery, both of which encountered significant quantities of light oil in similar Upper Cretaceous reservoir formations. These discoveries triggered a wave of exploration activity and license acquisitions as companies recognized the basin’s potential to host world-class petroleum accumulations.

TotalEnergies’ Venus discovery, located on Petroleum Exploration License 56, is estimated to contain recoverable resources in excess of 3 billion barrels of oil equivalent, making it one of the largest exploration discoveries globally in recent years. The company has announced plans to proceed with development of the field, with first production targeted for 2029.

Similarly, Shell’s discoveries at Graff and Jonker on PEL 39 have confirmed substantial resource potential, with the company planning to drill additional appraisal wells and progress development concepts. Galp Energia, a Portuguese energy company, has also made significant discoveries at Mopane on PEL 83, adding to the growing list of successful exploration wells in the basin.

The convergence of multiple major discoveries in a relatively small geographic area suggests that the Orange Basin contains a mature, working petroleum system with excellent source rocks, reservoir quality, and structural or stratigraphic traps. This geological setting increases confidence in the exploration potential of remaining undrilled prospects and has driven intense competition for acreage in Namibia’s offshore licensing rounds.

Strategic Context for Azule Energy and BP

The Volans-1X well marks the third significant hydrocarbon discovery in 2025 for Azule Energy and its partners, following the Capricornus-1X light oil discovery in Namibia and the Gajajeira-01 gas discovery in Angola. This track record demonstrates the effectiveness of Azule Energy’s exploration strategy and technical capabilities in identifying and testing high-potential prospects in frontier basins.

Azule Energy was formed in 2022 through the combination of BP’s and Eni’s oil and gas operations in Angola, creating a significant independent producer with substantial resources, production, and exploration acreage. The joint venture holds interests in multiple producing fields and exploration licenses offshore Angola and has expanded its footprint into Namibia’s emerging Orange Basin through strategic license acquisitions and farm-in agreements.

For BP specifically, the Volans-1X success contributes to an impressive exploration track record in 2025. The company has made eleven exploration discoveries this year across several basins worldwide, demonstrating the effectiveness of its exploration strategy focused on high-impact opportunities in both frontier and established basins.

Notable among BP’s 2025 discoveries is the Far South discovery in the Gulf of America, which encountered significant oil reserves in the deepwater Gulf of Mexico, a mature basin where BP has operated for decades. The company also announced success with well 1-BP-13-SPS at the Bumerangue block in Brazil’s Santos Basin, where it holds 100 percent participating interest and has been systematically exploring a series of prospects in prolific pre-salt and post-salt formations.

BP’s global exploration program reflects the company’s strategy of maintaining a balanced portfolio that includes both lower-risk opportunities in established basins where geological understanding is well-developed and higher-risk, higher-reward frontier exploration in emerging provinces like offshore Namibia. This approach aims to deliver a steady stream of discoveries that can be developed to replace declining production from mature fields while capturing potential upside from transformational frontier discoveries.

Namibia’s Petroleum Sector Transformation

The ongoing discoveries in the Orange Basin are fundamentally transforming Namibia’s economic landscape and creating opportunities for the development of a domestic petroleum industry. The southern African nation, which has traditionally relied on mining, agriculture, fishing, and tourism as economic pillars, now faces the prospect of becoming a significant oil and gas producer within the next five to ten years.

The Ministry of Mines and Energy of Namibia has actively promoted petroleum exploration through transparent licensing rounds and efforts to create a competitive fiscal and regulatory framework. The government has sought to balance the objectives of attracting international investment, capturing appropriate revenues for the state, and building local capacity and participation in the petroleum sector.

NAMCOR, Namibia’s national oil company, holds carried interests in most exploration licenses, positioning the state to benefit from commercial discoveries without bearing exploration costs. The company is building technical capabilities to actively participate in the sector and has announced plans to establish a National Petroleum Institute to develop human resources and technical expertise.

The potential development of multiple large-scale oil and gas projects in Namibia raises important questions about infrastructure requirements, environmental management, local content development, and revenue management. The country is studying international best practices and engaging with multilateral organizations to develop policy frameworks that maximize benefits while managing risks associated with petroleum development.

Infrastructure requirements for developing deepwater discoveries in the Orange Basin will be substantial. Projects will likely require offshore production facilities, subsea pipelines, onshore processing plants, export terminals, and supporting facilities. The port of Walvis Bay, Namibia’s primary deepwater port, is being positioned as a logistics hub for offshore development activities and may require expansion to handle increased activity levels.

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Technical Challenges and Development Considerations

Developing deepwater discoveries in the Orange Basin presents significant technical and commercial challenges that will require careful engineering and substantial capital investment. The water depths in the basin range from 2,000 to 3,500 meters, placing projects at the forefront of deepwater technology and requiring specialized equipment, vessels, and expertise.

The remote location of the discoveries, far from existing oil and gas infrastructure, means that development concepts must be designed as standalone projects rather than tying back to existing facilities. This requirement increases capital costs and development timelines but also provides opportunities for optimized, purpose-built facilities incorporating the latest technologies.

For gas condensate discoveries like Volans-1X, development concepts must address the handling of both gas and liquid hydrocarbons. Options may include floating production, storage, and offloading (FPSO) vessels that can process production and store liquids for periodic offloading to shuttle tankers, or subsea production systems tied back to centralized processing facilities that could serve multiple fields.

The high condensate-to-gas ratio observed at Volans-1X suggests that liquid recovery and monetization will be a key focus of development planning. The gas component may be reinjected to maintain reservoir pressure, used for fuel in offshore facilities, or potentially developed for export depending on volumes and market opportunities.

Natural gas monetization options in Namibia are limited by the absence of existing gas infrastructure or large domestic markets. However, the potential aggregation of gas resources from multiple discoveries could support development of liquefied natural gas (LNG) export facilities or gas-to-power projects to serve regional electricity markets through interconnected transmission networks.

Environmental and Sustainability Considerations

The development of Namibia’s petroleum resources is occurring against a backdrop of increasing global focus on energy transition and climate change. Energy companies, including BP, have announced commitments to achieve net-zero emissions by 2050 and are facing pressure from investors, regulators, and civil society to demonstrate compatibility between their activities and climate objectives.

BP has committed to becoming a net zero company by 2050 or sooner, including emissions from the oil and gas it produces. The company is investing in renewable energy, biofuels, hydrogen, and carbon capture technologies while working to reduce emissions from its existing operations through improved efficiency and electrification.

In the context of Namibia, BP and partners will need to demonstrate that any development projects incorporate best practices for emissions management, including minimizing flaring and venting, utilizing electrification where feasible, and implementing robust environmental safeguards to protect marine ecosystems in the Orange Basin.

The Namibian government has emphasized the importance of environmental stewardship in petroleum development and has established regulatory requirements for environmental impact assessments, emergency response planning, and decommissioning security. The Environmental Commissioner of Namibia oversees compliance with environmental legislation and has authority to impose conditions on petroleum activities.

Civil society organizations in Namibia have expressed concerns about potential environmental impacts from oil and gas development and have called for transparent processes, meaningful consultation with affected communities, and ensuring that petroleum revenues benefit all Namibians rather than creating environmental liabilities or exacerbating inequality.

Market Context and Global Energy Outlook

The timing of discoveries in Namibia’s Orange Basin coincides with ongoing debates about the role of oil and gas in the global energy transition. While renewable energy is growing rapidly, International Energy Agency projections indicate that oil and gas will continue to play significant roles in the global energy mix for decades, particularly in sectors where electrification is challenging such as aviation, shipping, and petrochemicals.

Natural gas, in particular, is increasingly viewed as a transition fuel that can displace higher-emitting coal in power generation while providing flexibility to complement intermittent renewable energy sources. Gas condensate projects like Volans-1X produce both valuable liquid hydrocarbons and natural gas, potentially serving multiple market segments.

However, oil and gas companies face uncertainty about long-term demand as policies to accelerate energy transition are implemented. This uncertainty affects investment decisions, project economics, and strategic planning for long-cycle developments like deepwater projects that may not reach peak production until the 2030s.

BP’s strategy emphasizes developing low-cost, high-return projects that can generate strong returns even in lower price environments while progressively shifting its investment portfolio toward lower-carbon energy sources. The company’s integrated energy strategy aims to balance continued value creation from hydrocarbons with growth in renewable and low-carbon businesses.

Regional Economic Impact and Development Prospects

If the multiple discoveries in Namibia’s Orange Basin progress to commercial development, the economic impact on the country and broader region could be transformational. World Bank analysis suggests that petroleum revenues could significantly boost government finances, support infrastructure development, and create employment and business opportunities across the supply chain.

Namibia’s population of approximately 2.6 million people and GDP of around $12 billion means that substantial petroleum production could represent a significant proportion of the national economy. However, the country’s small size also raises questions about absorption capacity and the risk of “Dutch disease” effects where resource revenues strengthen the currency and reduce competitiveness in other economic sectors.

The government is studying international experiences with petroleum revenue management, including the establishment of sovereign wealth funds to save and invest petroleum revenues for future generations. Namibia has expressed interest in learning from Norway’s petroleum management model, which has successfully used oil and gas revenues to build one of the world’s largest sovereign wealth funds while maintaining economic diversification.

Local content development represents both an opportunity and a challenge for Namibia. While the country has limited existing capability in petroleum operations, the government and industry are working to develop training programs, support local businesses, and create pathways for Namibian participation in the emerging sector. NAMCOR is leading efforts to build local expertise and has partnered with international training organizations.

Looking Ahead: Next Steps and Future Exploration

The positive results from Volans-1X will likely lead to planning for appraisal wells to better define the extent of the discovery and gather additional data to support commerciality assessments and development planning. The partnership will need to evaluate the discovery in the context of other prospects in PEL85 and assess whether to pursue standalone development or integrated development concepts that could include multiple discoveries.

Rhino Resources, Azule Energy, and their partners hold additional exploration acreage in Namibia beyond PEL85, with multiple undrilled prospects identified through seismic surveys and geological studies. The success at Volans-1X will inform strategies for exploring these additional opportunities and may lead to accelerated drilling programs if partners decide to capitalize on operational momentum and infrastructure mobilization.

The broader Orange Basin continues to attract exploration interest, with multiple companies planning wells on other licenses throughout 2025 and 2026. Each new discovery provides additional data about the basin’s petroleum system and helps reduce exploration risk for remaining prospects. The industry is entering a phase where integrated development concepts spanning multiple licenses and partnerships may become increasingly attractive to optimize infrastructure and reduce costs.

For BP, the Volans-1X success reinforces its position in the Orange Basin and validates the company’s decision to enter Namibia through the Azule Energy joint venture. The discovery contributes to BP’s strategy of building a portfolio of advantaged oil and gas assets that can compete for capital and generate strong returns while the company simultaneously invests in its transition toward lower-carbon energy systems.

Conclusion: Namibia’s Petroleum Future Takes Shape

The confirmation of the Volans-1X discovery in Namibia’s Orange Basin represents another significant step in the country’s emergence as a potentially major oil and gas producer. The accumulation of successful exploration wells across multiple licenses operated by different companies demonstrates that the basin contains a working petroleum system with significant resource potential.

For Namibia, these discoveries present both tremendous opportunities and important challenges. The country has the chance to leverage petroleum resources to accelerate development, improve living standards, and invest in long-term economic diversification. Success will require effective governance, transparent management of revenues, environmental stewardship, and deliberate efforts to build local capacity and ensure broad-based benefits from resource development.

For BP and its partners, the Volans-1X discovery adds to a growing portfolio of opportunities in the Orange Basin that could deliver significant value if successfully appraised and developed. The challenge will be optimizing development concepts to ensure attractive returns while managing technical complexity, capital requirements, and evolving expectations around emissions and sustainability.

As further appraisal and exploration activities unfold in the coming years, Namibia’s Orange Basin will remain a focal point for the global petroleum industry and a case study in how frontier exploration can rapidly transform a nation’s economic prospects. The ultimate success of these discoveries will be measured not only in barrels of oil equivalent but in how effectively the development benefits all stakeholders while respecting environmental limits and contributing to sustainable development objectives.

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By: Montel Kamau

Serrari Financial Analyst

23rd October, 2025