Northern Ocean expects to spend approximately US$20 million (about N$333 million) with Namibian suppliers in 2026, with procurement levels expected to be driven by offshore drilling activity and rig utilisation.
Operations Director Jonathan Shoes said the forecast reflects spending patterns seen during active operations since the company entered Namibia in 2022.
The company said local spending increases when rigs are operational, as drilling requires continuous resupply of consumables, equipment and technical services.
“Offshore conditions, including the 340-kilometre distance from shore, also require immediate procurement to avoid downtime during operations. For 2026, if we are here and operating, we project around US$20 million in local spend,” Shoes told the recent Petrofund Oil and Gas Suppliers Workshop.
The projection comes as Northern Ocean has already recorded cumulative local supplier spending of more than US$20 million since 2022.
Shoes said the company’s supplier base has expanded to more than 45 locally registered vendors over the same period, reflecting increased localisation of procurement during active drilling cycles.
Northern Ocean, established in 2017 with offices in Norway, Bermuda and Namibia, has operated in Namibia since 2022. It has supported the drilling and well testing of 16 wells, including work carried out using the Deepsea Mira rig for clients such as Shell and TotalEnergies.
Procurement activity remains closely tied to drilling schedules, with average local spending of about US$5 million per quarter during active operations.
“In the fourth quarter of 2025, we spent N$69 million, which is slightly more than US$5 million, with local suppliers as increased year-round drilling activity continues to create more procurement opportunities,” Shoes said.
The company maintains onboard inventory valued at more than US$20 million to support uninterrupted drilling operations, with procurement structured around immediate replacement once materials are used offshore.
“Because we are 340 kilometres offshore, you do not want to wait one, two or three days for supplies, so we use what we have and then place a purchase order to replace it,” he said.
He added that supplier demand spans consumables, equipment and specialised offshore services such as inspections, rope access and maintenance.
