Namibia expects the announcement of concrete outcomes from the ongoing offshore oil drilling off the coast of Namibia in 2024.
The expectation arises as oil majors Shell and TotalEnergies are presently conducting appraisal work on discoveries off the coast of Namibia.
“In 2024, we anticipate the announcement of concrete outcomes from the intensive offshore drilling of oil,” President Hage Geingob said in his New Year’s message.
TotalEnergies has allocated almost 50% of its global exploration budget of N$5.5 billion (US$300 million) to Namibia with the hope of confirming a multibillion-barrel discovery on Block 2913b within the Orange Basin.
Shell has allocated a quarter of its deep-water exploration budget for 2023 and 2024 to its oil and gas discoveries in Namibia’s Orange Basin.
To date, Shell has made four significant discoveries in Namibia: Graff, La Rona, Lesedi, and Jonker.
On-green hydrogen, Geingob said at least three pilot projects in the green hydrogen space are expected to conclude construction activities in 2024.
“As we look to 2024 and beyond, it is clear that we are entering a year that promises the delivery of tangible outcomes carefully curated throughout 2023,” he said.
The President also revealed said that the Namibian Ports Authority (Namport) is expected to finalize a concession agreement with Terminal Investment Limited (TIL), a subsidiary of the MSC Mediterranean Shipping Company, for the operation of the new Container Terminal at the Port of Walvis Bay.
“The Walvis Bay container terminal concession should become effective, paving the way for increased investment and container traffic for this strategic logistics corridor,” Geingob added.
The decision to concession the N$4.2 billion new container terminal, commissioned in 2019, is driven by significant changes in the shipping industry and challenging economic conditions. Namport aims to recoup its investment and leverage TIL’s expertise to enhance the port’s efficiency and competitiveness
