Exploration activity in Namibia’s Orange Basin contributed to a significant surge in foreign direct investment (FDI), with net inflows reaching N$12.6 billion in the fourth quarter of 2024, according to the latest quarterly bulletin from the Bank of Namibia (BoN).
“The quarterly growth was attributed to increased equity injections from oil exploration operators, as oil exploration activities mainly in the Orange Basin expanded with new operators coming on board,” BoN said.
Meanwhile, net outflows on the services account rose by N$4.6 billion to N$6.8 billion quarter-on-quarter, largely due to increased payments for business services linked to heightened oil and gas exploration activities.
The surge in FDI coincided with the arrival of the Noble Venturer drillship in Walvis Bay during Q4 2024, which commenced drilling operations for Rhino Resources on Block PEL-85. The campaign, targeting the Volans-1 and Sagittarius-1 prospects, was set to last at least 100 days.
The drilling followed the approval of Rhino Resources Namibia Ltd.’s Environmental Clearance Certificate (ECC) by the Ministry of Environment, Forestry and Tourism, permitting the drilling of ten exploration and appraisal wells off Namibia’s southern coast. The campaign was expected to inject approximately N$1.8 billion (US$94 million) into the local economy, benefiting communities in Lüderitz and Walvis Bay.
During the same period, ReconAfrica completed drilling the Naingopo exploration well in Namibia’s PEL 73, reaching 4,184 metres—surpassing its original target of 3,800 metres. The company is now evaluating subsurface data, with preliminary results anticipated soon.
Harmattan Energy, a subsidiary of Chevron, also drilled the Kapana 1-X exploration well in the Orange Basin under Petroleum Exploration Licence (PEL) 90. Despite reaching total depth 25% ahead of schedule, the well did not yield commercial hydrocarbons. However, BoN noted that the drilling provided valuable geological insights, strengthening confidence in future exploration on PEL 90.
Portuguese oil major Galp Energia reported that its investments in Namibia reached N$6 billion (€312 million) in 2024, primarily for exploration and appraisal activities. In its fourth-quarter and full-year financial report, Galp disclosed that its economic capital expenditure stood at €1.29 billion, with significant allocations to Namibian exploration, upstream developments in Brazil, and industrial low-carbon projects.
Galp holds an 80% stake in Petroleum Exploration Licence 83 (PEL 83), covering nearly 10,000 square kilometres in the Orange Basin, close to the border with South Africa.
TotalEnergies also ramped up its offshore exploration efforts in the Orange Basin during Q4 2024. In October, the company commenced drilling the Tamboti-1X well in Block 2913B, targeting a billion-barrel prospect using the DeepSea Mira rig. By November, TotalEnergies had increased its stake in Blocks 2912 and 2913B following additional acquisitions from Impact Oil & Gas. The company aims to advance the Venus discovery, with a development scheme expected by late 2025.
