Nam’s ‘decent’ oil discoveries at 10,5b barrels

The discovery of oil in Namibia at an estimated 10,5 billion barrels could position Namibia in the top 15 oil producing countries by 2035, and the fortunes of Namibians may just turn. This, however, does not mean these discoveries are an automatic remedy to the country’s socio-economic challenges, and if not well-managed, the subsequent result could well be worsened socio-economic challenges.

These are part of the statements made by government and National Petroleum Corporation of Namibia (Namcor) officials at the Namibia Oil and Gas Conference in Windhoek, where about 700 people are said to have registered to attend.

Speaking at the event, Namcor acting managing director Shiwana Ndeunyema, said the new four discoveries by Shell and Total Energies can have Namibia among the top 15 oil producers by 2035, presenting an opportunity to double the country’s gross domestic product (GDP) per capita in less than a decade.

Ndeunyema said the Venus field, discovered by Total, has been estimated at 5,1 billion barrels and is considered to be the second largest in the world.

This will also see Namibia receive the highest exploration capital expenditure in Africa from Total Energies to the value of N$5,5 billion appraising Venus.

Mines and energy minister Tom Alweendo said despite all this good, there is a need for local capability to manage the sector, and understand how oil will impact the energy transition.

“Poor management of the oil and gas sector can drive corruption and inequality that in turn will fuel social tensions and threaten political stability. We thus need to learn lessons from some oil producing nations whose oil production has not resulted in a broad-based socio-economic development,” said Alweendo.

He further said it was imperative to ensure that potential economic benefits are shared equitably and fairly.

Also speaking at the event, Namcor’s head of sustainable energies Frans Kalenga said oil and gas can exist with other energy sources such as green hydrogen and renewables, despite the call by some global interest groups demanding that energy transition takes place in a linear fashion, completely disregarding the livelihoods of those affected.

Kalenga, however, cautioned that Namibian crude oil will be going into a shrinking market – so prices may not remain as high as it currently is due to most of global transportation becoming electric and moving from petrol to diesel.

He said hence, focusing on oil and gas alone may expose Namibia economically, and diversification needs to occur.

Petroleum commissioner Maggy Shino said the Namibian government will continue exploring for hydrocarbons in a globally shifting environment and the ever present energy transition.

“As we forge ahead, the government is, therefore, inviting new entrants to accelerate the exploration and multiply the Orange Basin’s success to other equally prospective basins. The open licensing regime remains,” she said.

Email: lazarus@namibian.com.na

Twitter: @Lasarus_A

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