Namibia’s recent oil discoveries have the potential to position the country among the top 15 oil-producing nations by 2035.
“In the last 18 months, Namibia has made two significant light crude oil discoveries in the Orange Basin, namely Venus and Graff. The Venus discovery alone ranks as the second-largest deep-water oil discovery in the world since 2015. If confirmed alongside the other oil discoveries, it has the potential to elevate Namibia into the top 15 oil-producing countries by 2035,” Prime Minister Saara Kuugongelwa-Amadhila told a recent oil and gas event in Windhoek.
She said the exploration could create employment for 4,200 people and the government is optimistic as there is “a high probability that expectations may be exceeded”
“As a government, our intention is to establish governance structures that are not only responsive but also progressive and aligned with their intended purpose. To achieve this, we are developing robust legislation and policies, which include a progressive tax regime and a local content policy, all aimed at maximizing revenues,” added the Prime Minister.
These developments coincide with an announcement from the Namibian Ports Authority (Namport), which unveiled plans to seek private investment for a N$40 billion expansion of the country’s port infrastructure.
Andrew Kanime, Chief Executive Officer of Namport, emphasized a transition toward a landlord model for the port authority, where private companies possessing both technical expertise and financial resources would be encouraged to invest in the sector.
The expansion initiatives also encompass the construction of a second port in Luderitz.
The Ministry of Mines and Energy has indicated a preference for oil majors Total Energies and Shell, the entities behind recent oil discoveries off Namibia’s coast, to establish their operations at Luderitz rather than Walvis Bay.
The exploration endeavors undertaken by Total Energies and Shell have resulted in the discovery of light oil accompanied by associated gas from two wells, Venus-1 and Graft-1, within Namibia’s Orange Basin.
A third oil find was declared in early March, stemming from Shell and QatarEnergy’s successful drilling of the Jonker-1X exploration project.
Shell’s completion of the Lesedi-1X exploration well is reported to have also confirmed the presence of hydrocarbons.
The National Petroleum Corporation of Namibia (NAMCOR) projects that, at peak production levels, Namibia could achieve a gross domestic product (GDP) of U$37 billion from its recently discovered oil reserves, a substantial increase from the current U$12.3 billion.-Reuters/bloomberg/The Brief
