Canadian oil and gas company Sintana Energy has entered a definitive agreement with Namibian firm Crown Energy to acquire 67% of Giraffe Energy Investments, which owns a 33% share in PEL 79 in Namibia’s Orange Basin. An 8% stake in Giraffe’s common equity will also be allocated to a community trust, facilitated by the Knowledge Katti Foundation.
“The move by the Knowledge Katti Foundation represents a significant shift in the industry’s landscape and signals a new approach to community involvement and empowerment.”
Representing the African energy sector, the African Energy Chamber (AEC) applauds this transaction in Namibia’s Orange Basin, viewing it as a crucial step toward unlocking the country’s deepwater potential.
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The AEC praises Knowledge Katti, Founder of the foundation and Director of Sintana Energy, for directing resources into community development initiatives, setting an example for other energy companies in Namibia.
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“The equity contribution has enabled a direct mechanism that unlocks benefits for local communities in Namibia.”
This equity contribution establishes a unique vehicle expected to enhance local involvement in the oil and gas industry. Across Africa, energy entrepreneurs are embracing shared participation and trust-building with local communities to ensure they benefit from energy projects.
The Knowledge Katti Foundation’s initiative provides direct opportunities for communities, starting in Erongo and expanding to regions like Karras, ensuring Namibians participate in industry benefits.
“Namibia demonstrates time and time again that it is the market of choice for frontier E&P players.”
Through the transaction, Sintana Energy enhances its technical, operational, and in-country capabilities, entering a high-impact offshore prospect in Namibia. Partnering with Quantum Xploration, both companies will collaborate with Namibia’s national oil company NAMCOR to explore and develop PEL 79.
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Sintana Energy initially acquires a 49% stake in Giraffe for $2 million, with an option to increase to 67% over five years for an additional $1 million. This equity contribution prioritizes community empowerment in million-dollar transactions.
“By actively engaging with local communities and prioritizing their contribution and role in oil and gas projects, individuals such as Knowledge Katti are shaping a new narrative for the oil and gas sector.”
NJ Ayuk, Executive Chairman of the AEC, highlights the shift in industry dynamics facilitated by initiatives like the Knowledge Katti Foundation, emphasizing a holistic approach to industry development in Namibia.
