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Wednesday, August 24, 2005 - Web posted at 8:18:32 GMT Govt grants new oil exploration licences *STAFF REPORTERTHE Ministry of Mines and Energy yesterday issued petroleum exploration licences to three leading companies in a move that is set to witness a heightened search for in Namibia. |
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Speaking at the signing ceremony, Mines and Energy Minister, Erkki Nghimtina said increased instability in the Middle East, soaring demand on the international market coupled with rising prices for crude oil were incentives good enough to work hard towards exploration in Namibia. Nghimtina expressed optimism that oil could be found locally thus allowing the country a chance to realise the much needed revenue. However the Mines Minister urged players in the industry, big or small to work together. The three beneficiary companies which are set to commence oil exploration in Namibia are Namibia Hunt Oil Company, BHP Billiton and Neptune Petroleum Namibia. BHP Billiton is the world's largest diversified mining company. "With the increased instability in the Middle East, increasing global oil demand, our international promotional drive of 2004 and the high yet rising prices, we are seeing a resurgence of oil and gas exploration appetite in Namibia and the rest of the world. "While there is still a place for majors in the exploration game globally, we believe strongly that it is the large and medium independents such as Hunt Oil and BHP Billiton and smaller entrepreneurial oil companies such as Neptune Petroleum that will discover the next big oil fields of the world," said Nghimtina. Owing to capital demands and risks involved, Government needed to enter into joint ventures with international partners. Political stability and a favourable macro-economic environment were thus positive incentives prompting investment. International exploration giant, BHP Billiton got two licences while the remaining two were awarded one each. Apart from the oil licences, Government entered into a Memorandum of Understanding (MOU) allowing for the quantification in monetary terms gas reserves within the country. Namibia is one of the few countries endowed with natural resources and gas is one of them. The long awaited Kudu Gas project along the Orange River basin is one of the key developments set to boost the power industry thus lessening the burden on import bills. Hunt Oil Company of the United States of America (USA) was issued a four-year exploration licence. Nghimtina expressed satisfaction at the progress so far saying: "We have been particularly impressed with the professional manner in which they have conducted their application and negotiation process over the last few months." Neptune Petroleum, a relatively small company in the oil industry, was another beneficiary effectively given the go-ahead for the search in the Walvis Basin. The Mines Minister prayed that oil could be found in Namibia adding: "I continue to argue that if Angola has such an abundance of oil and South Africa also has some of their own, God could not have been so unfair to leave out Namibia in the middle without a drop at all." Robert Silverman of BHP Billiton said his company was excited with the openness and communication with which Government handled the negotiations hence the decision to invest in the exploration exercise. Silverman added that the potential was high to find oil in Namibia. "Certainly we endeavour to be a responsible corporate citizen during our exploration period hence mutual co-operation with Government is most welcome," said Silverman. BHP Billiton has been involved in the exploration game in South Africa. Larry Bottomely, Vice President, International Exploration, Hunt Oil Company highlighted that his company had a wealth of experience in exploration. Meanwhile the Petrofund yesterday received US$205 000 (about N$1,4 million) for its activities. |
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