Namibia’s ambitions to become an oil-producing nation and develop a domestic refinery remain dependent on the outcome of ongoing exploration activities and future commercial investment decisions, Minister of Industries, Mines and Energy Modestus Amutse has said.
While government continues to support the long-term goal of refining crude oil locally, Amutse said refinery development can only proceed once oil companies confirm that Namibia’s discoveries are commercially viable and capable of supporting production.
“At the moment, we don’t have the crude oil yet, but the plans, the desire of the government for the country to have a refinery is okay,” Amutse said.
His remarks underscore the gap between Namibia’s oil discovery success and the reality of bringing projects into production.
Several operators are currently conducting appraisal drilling, technical studies and commercial evaluations across offshore blocks, but no final investment decisions have yet been taken on most projects.
“At the moment, we have the resources, being mineral resources or oil and gas. We are, as a government, doing our part as much as we can to make it possible for the country to produce oil through the players in the industry,” he said.
Amutse said the future of Namibia’s petroleum sector now rests largely with operators as they assess whether discovered resources can generate acceptable returns.
“So, they have to take that decision taking into consideration various factors. If they complete their FID and they are satisfied, we will then inform the nation as to whether we will now go to the development stage,” he said.
The minister said Namibia could begin to see meaningful progress towards oil production before the end of the decade if ongoing projects advance successfully.
“In a few years time, maybe by 2029 or 2030 somewhere, we might be somewhere else than today,” he said.
Government has repeatedly highlighted the importance of capturing greater value from the petroleum sector through downstream industries such as refining and petrochemicals. However, officials have acknowledged that such ambitions remain dependent on the successful commercialisation of offshore discoveries.
Amutse said government continues to support exploration efforts while building technical capacity and preparing the country for a potential transition into an oil-producing nation.
For now, Namibia’s refinery ambitions remain tied to one critical question: whether the country’s offshore discoveries can move from exploration success to commercial production.
