Feasibility studies are currently under way for a proposed joint oil refinery between Namibia and Botswana, with Walvis Bay and Ghanzi under consideration as possible sites, Namibia Mining & Energy can reveal.
Although cost estimates of around US$4 billion have been mentioned, Deputy Head of the Upstream Unit, Carlo McLeod, says that no official budget has been confirmed pending the outcome of the studies.
“Namibia and Botswana are jointly exploring the development of a regional oil refinery. The project is currently at the feasibility study stage, with locations such as Walvis Bay and Ghanzi under consideration, although no final decision has been made,” he told Namibia Mining & Energy.
If realised, the refinery would process between 60,000 and 100,000 barrels of oil per day, producing fuels such as petrol, diesel, kerosene and jet fuel.
Both governments believe the refinery could significantly reduce dependence on imported fuels, strengthen regional supply chains and spur economic growth. The project may also be expanded to include other Southern African countries in the future, depending on their interest and involvement.
“While various cost estimates have circulated, no official cost has been confirmed pending the completion of feasibility assessments. Both governments view the initiative as a strategic step toward regional cooperation and sustainable energy development,” McLeod said.
This comes as Namibia is set to become the next oil frontier, with companies such as Rhino Resources announcing that they are aiming for first oil, as well as expectations for TotalEnergies and BW Energy to announce their final investment decisions by late next year.
On the onshore front, Reconnaissance Energy Africa commenced drilling its Kavango West 1X exploration well in the Damara Fold Belt on 31 July. The company is targeting a total depth of 3,800 metres, with results expected by the end of 2025.
