According to the Oil and Gas Industrial Baseline Survey IBS conducted by Deloitte Namibia the oil and gas sector will contribute an average of US$648 million N$115 billion to the GDP each year during the production phase
During the construction phase Namibias GDP is expected to grow by +1 with an estimated GDP average impact of US$113 million N$2 billion contributed by oil and gas every year
The primary drivers would be an increase in gross operating surplus and additional income for skilled labour the survey stated
Meanwhile as the project transitions into the production phase projected to last 20 25 years the economic impact is expected to be even more substantial
TotalEnergies and Shell commissioned the survey to identify potential local content opportunities within Nigerias oil and gas sector
The findings indicate that in a scenario involving one floating production storage and offloading unit the construction phase is expected to create 5000 jobs contributing to a 1 GDP growth during this period
The construction phase anticipated to last 6 8 years is expected to generate approximately 5000 jobs including 500 direct jobs 2000 indirect jobs and 2500 induced jobs said the report
Key sectors expected to benefit include the transport industry with 953 jobs the wholesale and retail trade sector with 598 jobs and private household services with 595 jobs
Approximately 7000 jobs are anticipated to be created with private household services wholesale and retail trade and transport industries being the primary drivers The GDP is expected to grow by 58 annually with the oil and gas sector contributing an estimated US$648 million each year said Deloitte
Primary drivers include gross operating surplus additional income for skilled labour and a significant impact from government take from oil production the survey noted
The survey gathered insights from 254 suppliers the majority being medium sized majority owned Namibian companies
The data showed a strong interest in the oil and gas sector among local suppliers but also identified challenges such as payment timelines administrative approvals and a shortage of skilled labour
The report emphasised the need for local suppliers to upskill to participate effectively in the oil and gas sector
Local suppliers will require upskilling to be part of the oil and gas sector While 82 of respondents currently have some elements of health safety security and environment HSSE in place only 14 do annual reporting and 29 monitor HSSE processes the report highlights
Deloitte said the projections are based on hypothetical scenarios as the final investment decision for the oil and gas project is still pending thus all figures should be considered as directional estimates rather than concrete forecasts
Deloitte Country Leader in Namibia Melanie Harrison announced the survey findings at the Namibia Oil and Gas conference
