Namibia is poised to take centre stage in global oil and gas exploration, with four rigs set to begin drilling US$100-200 million wells each in the Orange Basin within a week.
According to Subsurface Senior Analyst at Wood Mackenzie, Simran Bandal, the outcome could significantly enhance Namibia’s standing as a major player in the energy sector.
This comes as the Orange Basin has already demonstrated its potential, following discoveries by TotalEnergies and Shell in 2022 and GALP Energia in 2024.
Bandal noted that these findings have drawn attention to the low-cost and low-carbon attributes, key factors in the industry’s evolving strategies.
“The discoveries in Namibia have sparked a frenzy of activity among exploration teams looking to repeat that success. Chevron, Eni, BP, and Woodside Energy are already engaged, with additional interest in Namibia’s Walvis Basin. This region is now a major focus for the industry,” Bandal added.
She said the success of Namibia’s exploration reflects broader trends in high-impact ultra-deepwater drilling.
The Orange Basin has become a case study in revitalising exploration efforts and leveraging advancements in geological understanding.
“Successful high-impact exploration has the potential to deliver lower-cost, low-carbon-intensive barrels that can help fill the future supply gap. Namibia is leading the way by showing how these projects can align with both economic and environmental goals,” Bandal stated.
She added that exploration is now expanding beyond Namibia, with a focus on surrounding areas such as South Africa, Southern Angola, and offshore regions in Brazil, Uruguay, and Argentina.
Bandal noted that this surge in exploration activity highlights the growing appeal of ultra-deepwater plays, especially as these discoveries help meet future energy demands while maintaining lower environmental costs.
In contrast to Namibia’s proactive approach, the challenges faced by New Zealand underscore the importance of a balanced energy strategy.
New Zealand abandoned gas exploration, a move that was initially seen as environmentally progressive. However, it later found itself importing coal to meet its energy needs.
“Few governments will want to repeat New Zealand’s decision to abandon gas exploration only to find itself still importing coal to meet its energy needs. This highlights the critical role exploration plays in ensuring energy security while managing the transition to greener solutions,” Bandal explained.
This comes as, since 2015, high-impact oil and gas exploration has generated over US$160 billion in value, based on an industry planning price of US$65 per barrel of Brent crude.
The Orange Basin in Namibia has seen significant interest, with drilling activities in water depths exceeding 2,000 metres, yielding low-cost and low-carbon-intensive barrels.