Chevron through Harmattan Energy intends to invest approximately N$2.2 billion (US$120 million) in Namibia’s economy through offshore exploration projects.
The company, which holds an Exploration Licence for Block 2813B off the southern coast of Namibia, plans to spend up to N$224 million (US$12 million) per well, with 10 wells planned for drilling.
According to documents, the company’s local spending will be approximately US$2.5-4 million per month during exploration well drilling, per well, totalling up to US$7.5-12 million per well.
The estimate includes procurements of local services such as hotels, accommodation, logistics, fuel costs.
The local spending for the 10 planned wells is expected to considerably impact the economies of Lüderitz, Walvis Bay, Oranjemund and Windhoek.
The project with its various support services is likely to significantly boost local spending at Lüderitz or Walvis Bay, where most contractors are expected to be located, with some benefit via the use of the helicopter service at Oranjemund and accommodation and travel services in Windhoek.
Staff of the onshore bases at Walvis Bay, Lüderitz and Oranjemund, who reside elsewhere, will require accommodation during the mobilisation, drilling and demobilisation phases.
Some of the estimated 200 offshore staff will also need short-term accommodation at the beginning or end of their four-week shifts, contributing to local spending on food, transport, entertainment and other services
Furthermore, while some logistics support services may be contracted to international companies, the company might partner with local companies.
The impact is expected to last approximately three years, the estimated duration for drilling the 10 wells.
This comes as the exploration programme involves drilling up to five exploration wells and five appraisal wells, along with Vertical Seismic Profiling (VSP) for future wells, well testing and the plugging and abandonment of wells.
