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title: Chevron Deepens its Position in Namibia
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Plus, Shell takes FID on LNG Canada Phase II. ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­    ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­  

| View in browser Wednesday, 7 October, 2026 / Edition 130 Brazil just finished its first round of presidential election voting. Flávio Bolsonaro, the 45-year-old son of former President Jair Bolsonaro, received 47.3 percent of the vote, and the incumbent,  President Luiz Inácio Lula da Silva, received 44.8 percent. A runoff will take place on 25 October to decide who will be the country’s next president.   About a week and a half before that, AAPG will host a Brazil-focused webinar, featuring Sylvia Anjos, Petrobras’ chief exploration and production officer, and Ruaraidh Montgomery, head of energy trends and analysis at Welligence.   The webinar is free to the public. You can register to attend here. We hope to see you there!   Now let’s look into two pieces of energy news from the past week.   Shangyou Nie   Editor, Well Read Shell Takes FID on $21 Billion LNG Canada Phase 2 Ramon Cliff/Shutterstock.com Shell announced last week that it has taken final investment decision for LNG Canada Phase 2. With the expansion, LNG Canada will double its production capacity.   The Canadian government calls the decision a “nation-building investment.” Canadian prime minister Mark Carney applauded the quick decision by Shell and its partners.   Canadian company TC Energy announced a related decision to double the gas pipeline capacity to support LNG Canada.   About LNG Canada Phase 2: Shell recently announced its decision to take FID for LNG Canada with its Asian partners, Petronas, PetroChina, Mitsubishi, and Kogas. LNG Canada is located in Kitimat, British Columbia, on Canada’s Pacific coast, allowing direct access to Asian customers. Phase 2 will cost about $21 billion to add two large LNG trains, each with 7 million tonnes per year of capacity. Shell’s release did not specify Phase 2’s cost; however, its partner Mitsubishi said its share would cost $3.2 billion. That number implies the total project cost is roughly $21.3 billion. Shell said that Phase 2 will earn “double-digit” ROIs. According to Shell, Phase 2 will also add an LNG storage tank, condensate tank, loading berth, and expanded utility and process systems. On 2 October, Shell and its partners awarded $15 billion to a 50:50 joint venture between Fluor and Japan’s JGC for the engineering, procurement, fabrication, construction, and commissioning contract for Phase 2. The same group was also the contractor for LNG Canada Phase 1. Shell (operator and 40 percent) is the lead for joint venture LNG Canada Development, with partners Petronas (25 percent), PetroChina (15 percent), Mitsubishi (15 percent), and Kogas (5 percent). Petronas initially wanted to build a standalone Pacific Northwest LNG facility, but eventually it decided to change course and join LNG Canada. Commercial operations for Phase 2 are expected in the “early 2030s.” Background: With the near closure of the Strait of Hormuz creating ongoing shipping challenges, customers in Northeast Asia are crying out for more Pacific Basin LNG supply. With Phase 2, Canada will rise to become one of the world’s top 5 LNG exporters. It is currently the 19th largest exporter. Shell is the world’s leading IOC for LNG. In Q3, Shell completed its $13.6 billion acquisition of ARC Resources, which provides additional gas reserves in British Columbia and Alberta. Shell and partners took FID for LNG Canada Phase in 2018. Phase 1 came on stream in June 2025. Bigger picture: Canada’s national strategy for LNG TC Energy also recently announced its plan to expand the Coastal GasLink (CGL) pipeline. TC Energy confirmed that it will “nearly double” capacity for CGL Phase 2 by adding new compressor stations along the 670-km pipeline from Dawson Creek to Kitimat. CGL delivers 2.1 billion cubic feet per day of gas from Alberta and British Columbia to LNG Canada Phase 1. Canada hopes to become an “energy superpower” with its abundant oil and gas resources. This ambition gained more public support amidst ongoing trade frictions with the United States. Carney’s government is actively pushing for more diversification and independence from the U.S. market. What they’re saying: “The speed of this project shows that now, when Canadians want something built, we get it built,” said Carney, highlighting that it took only 12 months “from referral to final investment decision” for Phase 2. The FID decision shows “massive vote of confidence in Canada, and proof that not only does Canada have what the world wants—but we can get big projects built to deliver on that,” said Tim Hodgson, Canada’s Minister of Energy and Natural Resources. “Phase 2 supports Shell’s strategic objective to be the world’s leading integrated gas and LNG business by connecting Canadian resources with Shell’s global LNG portfolio, trading capability, and customer reach,” added Cederic Cremers, president, integrated gas at Shell. “By nearly doubling the capacity of this world-class infrastructure, we are maximizing the value of this asset, which is underpinned by the Western Canada Sedimentary Basin—one of the most prolific natural gas resource basins on the planet,” said Francois Poirier, TC Energy’s President and CEO. What to watch: Bloomberg reported that in April, regulators from British Columbia ordered Shell to address “black smoke emissions from flaring.” Will Shell be able to effectively control flaring at LNG Canada? Sponsored Understanding Mobile Shales Through Science and Practice   Discover the latest advances in mobile shale research through expert presentations, collaborative discussions, and a unique field excursion in Bucharest, Romania. LEARN MORE Chevron Deepens its Namibia Position Ahead of Drilling Wirestock Creators/Shutterstock.com Chevron, the world’s second-largest IOC, acquired a 10 percent stake in Petroleum Exploration License 90 for $11 million in cash and a contingent payment from Trago Energy, a Namibian private company.   The transaction continues Chevron’s recent reload of deepwater exploration acreage worldwide. Norwegian major Equinor also recently joined Chevron’s Namibia block.    Deal details: According to Sintana Energy, the agreement was signed by Harmattan Energy—a Chevron affiliate—and Trago Energy. Toronto- and London-listed Sintana Energy holds a 49 percent indirect interest in Trago Energy. Trago will transfer all of its interest in PEL 90 to Chevron, in exchange for: $11 million in cash Additional contingent payment on revenues associated with commercial production. Production is currently estimated to be between 1.5 and 2.5 million barrels of oil, depending on oil price assumptions. After the transaction, Chevron (operator) will hold 45.1 percent equity with partners QatarEnergy (27.5 percent), Equinor (17.4 percent), and Namcor. Chevron and partners are about to drill a second exploration well, Nabba-1X in PEL 90. Its first wildcat, Kapana-1X, drilled in December 2024 and January 2025, was not successful. Background: On 18 August, Norwegian major Equinor acquired 17.4 percent equity in PEL 90 from Chevron. Namibia is the first new country Equinor has entered since 2017, according to Aatisha Mahajan, head of exploration for Rystad Energy. PEL 90 is located directly north of TotalEnergies’ PEL 56, in which TotalEnergies is moving toward FID for the Venus field. Chevron is reloading its global exploration portfolio. In West Africa alone, Chevron… Is continuing its investments in Angola and Nigeria Progressing on a gas monetization project in Equatorial Guinea, which it acquired from Hess Signed two blocks in Guinea-Bissau in November 2025 Took over operatorship for deepwater licenses PEL 82 and PEL 90 in Namibia since April 2024 On the other side of the Atlantic Basin, Chevron recently acquired equity in two deepwater blocks (OFF-1 and OFF-7) in Uruguay. What they’re saying: The Chevron-Trago deal “is a further demonstration of our ability to reduce the capital intensity and downside risk of our portfolio while preserving exposure to successful outcomes associated with our high-impact, exploration activity,” said Robert Bose, CEO of Sintana Energy. “Namibia is a promising basin that adds attractive option value to our portfolio and complements our broader Atlantic Margin position,” said Philippe Mathieu, Equinor’s executive vice president for exploration and production international, according to Upstream. What to watch: Will Chevron start seeing drilling success in its newly acquired international acreage? Will TotalEnergies take FID for the Venus field in Namibia in 2026? Will Equinor start to acquire more international exploration acreage? Want to help AAPG grow? Consider supporting AAPG's free resources, like this one, by donating today. AAPG thanks our advertisers for their support. Sponsorship has no influence on editorial content. Advertise with us.   Was this email forwarded to you? Sign up now.   You received this email because you signed up for newsletters from AAPG. To stop receiving this newsletter, unsubscribe or manage your email preferences.   AAPG  1444 S. Boulder Ave., Tulsa, Oklahoma 74119, USA (918) 584-2555 \| 1 (800) 364-2274 (US and Canada) www.aapg.org |
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