Namibian state-run oil and gas firm Namcor, as part of the JV that will explore in the Kavango West region for hydrocarbons, will only be entitled to a 7% share of the profits if exploration pays off, Petroleum Africa reported.

Angolan-based oil firm Acrep is currently doing the exploration with 70% stake as the main shareholder, while two other Namibian companies, namely: Premier O&G and Gravity MI, are involved, according to The Namibian,

The country’s Minister of Mines and Energy, Obeth Kandjoze, said that the 7% stake was simply a consensus agreement, stressing that the idea is to encourage local participation.

“This is much like it (Namcor) has had a 10% shareholding in Kudu [gas project], and many other licenses,” he explained, adding that there are very few licenses that have no participation by Namcor.

He said the country’s laws allow for anyone with financial muscle and geo-scientific knowledge in the field of oil and gas to express interest by way of an application to do business in this field.