By Charles Tjatindi WALVIS BAY Russian oil drilling company Sintezneftegaz has sunk its first exploration well offshore in Namibia. Sintezneftegaz is conducting oil exploration in partnership with local partners such as Energulf Namibia Ltd, the Namibian Petroleum Cooperation, Petro SA, and Kunene Energy. Sintezneftegaz Namibia Ltd, as the local subsidiary is known, is planning a 4 400m depth drilling and will consider the possibility of drilling to a depth of 5 500m. The company's drilling vessel "Deep Venture" has started drilling operations in the search for bankable oil deposits in north-western Namibia, a statement by the company announced. The company's first oil exploration well in Namibia is located offshore Namibia in Block 1711of the Namib basin. The water depth at the drilling location is about 776m. The port of Walvis Bay has been selected for the setting up of base supplies to support the drilling operation. The Kunene well, where exploration is said to be underway, is situated about 750 km northeast of Walvis Bay and about 60 km offshore. The company has also lined up local and multi-national contractors and suppliers for its Namibian operation, which includes Firstdrill, Tidewater, and Petroalliance, amongst others. The current explorations will mark the Russian company's maiden venture in northern Namibia, and is expected to produce hordes of benefits for the host nation. The greatest benefit to the host nation will be the discovery of oil deposits, while invaluable geological information on the area could also be generated through the company's venture. The drilling results will also allow the evaluation of the Namib Basin's oil-gas bearing capacity. It is hoped that such results will assist other such ventures in future. Increases in crude oil prices since last month and subsequent high demands from major oil consumption countries have placed tremendous pressure on economies around the world. Although fuel is heavily subsidized by the Government in Namibia, recent increases have forced it to pass on the difference to consumers. Many locals are now seemingly pinning their hopes on the success of similar exploration operations in Namibia, as fuel prices increase regularly and continue to skyrocket. The latest fuel price increase to be effected next week Monday has placed the price of diesel past the N$9 per litre mark for the first time ever. The Ministry of Mines and Energy warned consumers to brace themselves for harder times, sending a shockwave of desperation and uncertainty for most industries that heavily rely on especially diesel fuel for production.
2008-04-14 00:00:00 10 years ago