Description of Activities

The Commission resolved to approve without conditions the acquisition by Azule Energy Exploration (KB) Limited of participating interest in the rights and obligations under Petroleum Exploration License Number 0085 (“PEL 85”) issued by the Petroleum Commissioner of Namibia, the Petroleum agreement and joint operation agreement (together “Farm-Out interest”) from Rhino Resource Namibia Limited. 

 The primary acquiring undertaking, Azule Energy Exploration (KB) Limited is a wholly owned subsidiary of Azule Energy Holdings Ltd. The acquiring group is involved in the upstream oil and gas business but it’s not currently active in Namibia. 

The primary target undertaking, Farm-Out interest is currently controlled by Rhino Resource Namibia Limited, and it’s licensed to explore for oil and gas. The target undertaking is currently only active in the exploration for hydrocarbons in Namibia. 

 The Secretariat defined the relevant product market as the market for the exploration of crude oil and natural gas.

Merger Determination

The Commission found the proposed transaction unlikely to result in the prevention or substantial lessening of competition; does not result in any undertaking acquiring or strengthening a dominant position in the market and does not raise any public interest concerns.

However, as stated under section 50 of the Act, this approval does not relieve parties from complying with any other mandatory statutory approvals that any of the parties to this merger must comply with under Namibian Laws.