Staff Reporter
WALVIS BAY, November 10 — In a recent announcement, Westmount Energy Limited (AIM: WTE, OTCQB: WMELF) underscored the significant potential of deepwater exploration in offshore Guyana and Namibia, strategically positioned to benefit from the anticipated surge in industry spending on exploration.
The International Energy Agency (IEA) estimates that investment in the oil sector’s “upstream” segment is expected to reach its highest level since 2015, projecting a figure of up to US$528 billion for this year.
Westmount highlighted Guyana as a key focal point in the sector, emphasizing Chevron’s recent monumental acquisition of a 40% stake in the Exxon-operated Stabroek asset for US$53 billion. Stabroek holds an impressive 11 billion barrels of crude reserves.
Offshore Namibia was also identified as a notable “hotspot,” featuring major industry players and recent discoveries. Westmount specifically pointed to Exxon’s upcoming drill plan for the second half of the next year on the Exxon-operated Canje block, in which Westmount investees JHI Associates and Cataleya Energy Corp (CEC) respectively hold 17.5% and 20%.
Additionally, Westmount highlighted the Ratio Petroleum-CEC Kaieteur block, where the explorers now share a 50-50 stake following the departure of Exxon and Hess. Westmount is also invested in Eco Atlantic, which operates the Orinduik Block with a 75% stake and is actively seeking a new exploration partner.
In Namibia, Westmount’s investment in Africa Oil Corp (TSX: AOI) is focusing on appraising the Venus light oil discovery, with upcoming testing of the Venus-1A well and the drilling of the Mangetti-1 well.
Westmount concluded its statement by emphasizing that spending in deepwater and ultra-deepwater areas is anticipated to experience the most rapid growth. The inherent emission advantages of developing significant resources in highly productive deepwater reservoirs are expected to attract capital consistently. Deepwater production is projected to witness a remarkable increase of over 60% between 2022 and 2030.
In summary, the outlook for deepwater exploration in Guyana and Namibia appears highly positive, with both countries well-positioned to capitalize on the escalating industry spending on exploration, given the involvement of major players and recent discoveries.
