The Bank of Namibia (BoN) has urged caution regarding the country’s oil and gas prospects, emphasizing that a final investment decision (FID) must be made before any development can be confirmed.
BoN Governor Johannes !Gawaxab warned against premature expectations, stating that while Namibia remains an attractive exploration destination, the sector carries significant financial risks.
“I think the hype was too high, right? So we need to lower our expectations and wait until we’ve got an FID decision,” !Gawaxab said.
“A final investment decision made by one of the oil majors that they are going to develop the fields.”
He stressed that oil exploration remains uncertain, despite the country’s stable investment climate.
“It’s a high-risk game. The capital that’s involved with exploration includes significant amounts. And because one company has decided to write down US$400 million doesn’t say we have become unattractive overnight,” he said.
Namibia, he noted, continues to offer key advantages such as political stability and policy certainty, which are crucial for attracting investors.
The central bank is also working to strengthen its understanding of the oil and gas industry.
“The Bank of Namibia is building capacity to further understand and better understand the industry in terms of what’s commercially available and what’s not commercially viable,” !Gawaxab said.
His remarks come amid ongoing oil exploration in the Orange Basin and other regions, with no guarantee of commercial production.
Meanwhile, French energy giant TotalEnergies recently announced that it has postponed its final investment decision on its major offshore oil discovery in Namibia to 2026.
