The oil is not yet out of the ground, however, plans to build an oil refinery have become a priority for the government.
President Netumbo Nandi-Ndaitwah says this is part of the country’s efforts in maximising the economic benefit of the nation’s energy resources and promoting local participation in the sector.
In a speech delivered on her behalf at the seventh edition of the Namibia International Energy Conference yesterday, Nandi-Ndaitwah said: “Local content also includes value addition such as developing downstream capacity and infrastructure like a refinery”.
Nandi-Ndaitwah added that the country has one of the most favourable petroleum fiscal regimes and incentives in Africa, therefore, making it the best place for investments.
“Our goal is to export power, strategic energy commodities, and knowledge partnerships, while promoting regional integration and helping reshape intra-African trade through energy-led industrialisation,” said Nandi-Ndaitwah.
African Energy Chamber executive chairman NJ Ayuk has told Namibia to aggressively pursue its hydrocarbon resources for the betterment of the country.
Ayuk says there have been talks of decarbonisation, however, the energy gap on the African continent requires the continent to use of all available sources of energy.
“Produce every drop of hydrocarbons you can find and better the life of your people, and I urge the industry to do one thing and one thing only – drill, baby, drill,” he says.
However, Ayuk adds that this push for production must be in sync with the empowerment of Namibians.
“As we sit here as an industry, proclaiming our right to drill every prospect we find, it’s also important that we proclaim that Namibians need to be part of it. We cannot have an industry where local content is not part and parcel,” says Ayuk.
Additionally, he says the African Energy Chamber will continue to support Namibia and its energy ambitions.
“And I promise you, as long as I’m the chair of the chamber, we are going to back this conference and we’re going to back Namibia. The only way we’re not going to support it is if they take me out. I don’t think they will any time soon.
They’ve tried, I’m still standing.”
Ayuk adds that there is an urgency to translate discoveries into production. He made examples of other African nations where delays hindered progress.
“Case in point, Ghana had great discoveries.
Three months later, Uganda had great discoveries. Ghana produced three and a half years later. Uganda didn’t produce for 17 years,” he says.
According to a report by Namibia Mining and Energy earlier this year, Namibian company ISF Trading Enterprises announced plans to build a 300 000-barrels per stream day modular oil refinery at Walvis Bay.
The refinery will initially process imported crude oil, with a transition to locally sourced crude oil expected by 2027 to 2028 as Namibia’s oil production ramps up.
As part of the refinery development, the company also plans to construct a crude and petroleum products tank farm.
The facility will feature a 12-day crude storage capacity of 573 000m3 across 12 tanks and a three-day refined product storage capacity of 145 000m3 across eight tanks, supporting the refinery’s operations at full capacity.
The conference is being held under the theme ‘Leading The Way: Becoming An Energy Hub with In-Country Value’.
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