Namibia launches first liquid mud plant to support oil and gas exploration

Industrialisation and trade minister Lucia Iipumbu has launched Namibia’s first liquid mud plant (LMP) and cement bulk facility.

The facility aims to support emerging oil and gas exploration activities in the country.

According to Iipumbu, the launch was made possible through an investment by Baker Hughes – an energy technology company that provides solutions to energy and industrial customers worldwide.

The launch took place on Thursday at Walvis Bay and was attended by Erongo governor Neville Andre, American ambassador to Namibia Randy Berry, Baker Hughes executive vice president Amerino Gatti and senior vice president Tayo Akinokun, as well as Namport chief executive Andrew Kanime.

Iipumbu said the development is pivotal as Namibia continues to position itself as an energy hub while building capacity to support exploration activities and alleviate reliance on imported drilling fluids from other countries.

“These efforts will go a long way in streamlining operations, reducing costs and addressing logistical shortcomings

“The launch of the LMP we are witnessing here today will produce drilling fluids locally for offshore operations, a major step toward nurturing our domestic oil and gas industry,” she said.

According to Iipumbu, the Walvis Bay facilities include a maintenance and repair base to support the ongoing activities of offshore exploration, driven by significant discoveries and investments by global energy players.

She noted that the LMPs will play a crucial role in offshore exploration in Namibia through the production, storage and delivery of synthetic oil-based mud and brines used during drilling to mitigate the risks of blowouts and friction.

“With Namibia emerging as an exploration hotspot following recent offshore discoveries by industry giants such as Total Energies, Shell and Galp Energia, to mention a few, we believe the demand for drilling fluids has also increased, hence positioning Baker Hughes as a strategic partner in the industry.”

Iipumbu said the establishment of the local production facility will ease the current burden experienced by most companies importing drilling fluids from other countries, and reduce delays resulting from shipping logistics.

It will further address the challenge of inflated costs of imported products and other associated risks, she said.

The recent oil discoveries will help to unlock industrialisation activities through the transfer of technology, she added.

“I have no doubt that our recent oil discoveries can and must help unlock industrialisation activities through the transfer of technology, more value addition in domestic supply sectors, the generation of indirect jobs along the supply chain, and the creation of business opportunities for our entrepreneurs.”