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Oil and Gas Sector on the Brink of Major Transformation: Exploration and Discoveries
Namibia’s offshore oil and gas sector is set for a significant transformation, following a series of major discoveries in recent years which include Graff-1, Venus-1, Jonker-1X, La Rona-1 and Lesedi-1X. These developments have attracted global oil and gas giants such as TotalEnergies, Shell, Chevron and ExxonMobil, alongside energy corporations like Galp Energia and QatarEnergy.
ReconAfrica, in partnership with the National Petroleum Corporation of Namibia (NAMCOR), recently started drilling the Naingopo exploration well, with expectations of a successful outcome that could lead to a multi-well exploration campaign on PEL 73. In a similar move, Woodside Energy has secured an exclusive option to acquire a 56% stake in PEL 87, paving the way for the area’s first exploration well. Additionally, Rhino Resources has awarded Halliburton a contract for deepwater multi-well construction in Block 2914A, in partnership with Azule Energy. This collaboration is aimed at fast-tracking Namibia’s oil and gas growth, combining both local and international expertise. NAMCOR and Chevron have also entered an agreement that gives Chevron an 80% operating interest in PEL 82, with the national oil company and Custos Energy retaining carried interests. These partnerships signal a rapid expansion of the country’s energy landscape, positioning Namibia as a key player in the global oil and gas industry.
Local Content Development
At the 2024 Namibia Oil and Gas Conference, the Ministry of Mines and Energy stressed the importance of responsible resource management and collaboration within the oil and gas sector. The event, organised by the Namibia Investment Promotion and Development Board (NIPDB), the Economic Association of Namibia (EAN) and the Hanns Seidel Foundation, was held under the theme “The Next Step Towards a Prosperous Oil and Gas Industry”. The ministry identified three key priorities for achieving prosperity such as the good governance of resources, international investment in local capacity, and strengthening NAMCOR’s role in managing petroleum resources.
Delivering the keynote address, Deputy Minister of Mines and Energy, Kornelia Shilunga, urged stakeholders to prioritise local value creation, transparency and sustainability, while calling on international companies to fully integrate Namibian talent and suppliers. She also emphasised NAMCOR’s responsibility to enhance governance and transparency in its operations, encouraging collaboration among government, industry and entrepreneurs to ensure shared prosperity in Namibia’s oil and gas future.
A strategic speaker at the conference and mayor of Lüderitz, Councillor Phillippus Albertus Balhao, shared his excitement and pride in the progress made by the Lüderitz Town Council. Despite being a small council with limited staff, the mayor said that while the town once faced significant challenges, the burgeoning oil and gas sector has brought new energy and hope to the community, leading to reinvestment, refurbishment and job creation. Balhao advocated for local content, calling for the Namibian youth to seize opportunities within the oil and gas industry. “Don’t stare yourself blind at just the star. Look at what you’re good at. Look at what you’re passionate about because it’s still a green field,” said Balhao.
Furthermore, the chairperson of the Economic Association of Namibia (EAN), Jason Kasuto, said for Namibia to become a leading energy hub on the African continent, economic growth must be inclusive to ensure sustainable development. “There’s no sustainable growth if it’s just economic growth. Economic growth needs to be inclusive,” he stated. Kasuto has called for a clear in-country value strategy to guide policy implementation and the establishment of a supplier database to facilitate market access for SMEs. “This database would bridge the gap for SMEs, allowing them to connect with international oil companies and meet local content obligations,” he explained. Kasuto said businesses that want to be part of this sector should position themselves early, as the market dynamics may shift in the coming years.
