Minister of Mines and Energy Tom Alweendo has called on exploration companies with commercially viable oil discoveries to expedite the development process for full-scale production.
“Although I consider myself a pragmatist, the fact is that we need the resources out of the ground for the oil and gas industry to flourish; we need to develop plans now to speed up production as soon as the discoveries are determined commercially viable,” said Alweendo.
He made these remarks in Windhoek on Wednesday, where he also urged the oil companies to play their role regarding the Namibian content (local content).
The Minister said this is necessary and a requirement for them to submit as part of their annual capacity building and Namibian Content Plans.
“I am alive to the fact that the Local Content Policy is still in draft form. However, that is not a good reason for the oil companies not to have their Namibian content plans in place,” reiterated Alweendo.
Namibia is now a highly attractive exploration and production market following oil discoveries made in 2022 and 2023 by oil majors TotalEnergies (Venus) and Shell (Graff and Jonker-1X) off the coast of Namibia.
Galp Energia, leading a consortium with NAMCOR and Custos, has also confirmed oil discoveries off the coast of Namibia.
Based on these discoveries, which also continue to emerge, the government embarked on a National Upstream Petroleum Local Content Policy that outlines a pathway for Namibian citizens and companies to benefit from oil and gas resources.
This is to be done by increasing local participation in the oil and gas industry, from exploration and production, and through the entire industry value chain.
“The oil discoveries in the Orange Basin suggest the biggest oil yield ever found in Sub-Saharan Africa,” Alweendo said.
“I must also hasten to add that we are still assessing the commercial viability of these exciting finds. However, we are confident that the early projections will prove accurate, and that we need to prepare for a hydrocarbon bounty that will turn Namibia into a major oil and gas producer. It is our belief that there is still so much to be discovered, both in the Orange Basin and in other locations.
“Namibia’s offshore Walvis, Lüderitz and Namib basins hold tremendous promise, yet are mostly unexplored. We are open for business, and it is our resolve to keep Namibia attractive for investments. It is only through investment, especially private sector investment, that we will turn our oil and gas opportunities into prosperity. However, the investors we seek to attract are those who agree that the investment must result in a mutually rewarding relationship that benefits both the Namibian people and the investor,” he added.
The Minister highlighted that Namibia should be accorded an opportunity for a smooth energy transition moving towards net zero, instead of being hurried and left with energy poverty.
He further pointed that “as we contemplate our future as a hydrocarbon producer, we also recognise the global climate challenge. There are those, of course, who argue that the global push toward green energy makes Namibia’s oil and gas dreams moot.” “We are, however, happy to note that recently, when discussing the energy transition there has been a refocusing on the realities of people living without energy. The reality is that what is needed is reliable and affordable energy. What is needed is an energy that is accessible to hundreds of millions of people without access to energy, thereby improving their livelihoods.”
