Minister of mines and energy Tom Alweendo this week launched ‘Energy Invest: Namibia 2023’, an official investment report which specifies Namibia’s petroleum, mining and energy resource potential.
The report was launched at the ongoing Africa Energy Week summit underway in Cape Town.
The summit hosted a Namibia country-focus session titled ‘Invest in Namibia Energies’.
The inaugural publication is produced by Energy Capital and Power and endorsed by the Ministry of Mines and Energy.
The report outlines the country’s energy transition journey from an oil-prospecting nation to a new player on the global energy stage with sizable billion-barrel hydrocarbon discoveries, and provides an overview of Namibia’s quest to become Africa’s premier energy capital by 2030.
Following five commercial discoveries in Namibia’s Orange Basin, the report examines the role of attractive petroleum contracts and guaranteed fiscal stability in ensuring timely financial investment decisions, as well as the establishment of necessary on- and offshore infrastructure to support continued exploration.
Alweendo said it is Namibia’s intention to manage its oil and gas sector to transform the domestic economy.
In line with that, Namibia is set to introduce a lot of market policies to ensure that in-country value is being generated from these oil and gas resources.
“We have put together a book about Namibia’s energy sector, which provides a lot of information about our country.
Earlier this year, the ministry launched the national upstream local content policy with a stern blueprint that spells out the Namibian government’s intent, direction and undertaking to create a pathway for the full participation of all Namibians in the petroleum upstream sector,” the minister stated.
Since March 2022, when oil majors Shell and TotalEnergies announced major oil and gas discoveries, which include the Venus-1X, Graff-1X, Jonker-1X, La Rona-1X, and Lesedi-1X exploration projects, there have been rapid developments as Namibia is currently reviewing its legislation and policy positions to optimally capitalise on the oil discoveries.
An estimated 11 billion barrels of oil reserves have been discovered offshore Namibia, putting the country on par with its northern neighbour and sub-Saharan Africa’s largest oil producer, Angola.
Additionally, ReconAfrica announced in June 2023 an updated prospective resource estimate of 22,4 trillion cubic feet (tcf) of natural gas in Namibia’s onshore PEL 73 licence area in the Kavango Basin.
This adds to the already confirmed the Kudu gas reserves of 1,3 tcf off Namibia’s southern coastline of Oranjemund.
The general manager for engineering company and operator of the Kudu Conventional Gas Field, BW Offshore, Klaus Endressen, said gas demand would follow supply.
“We have companies coming to us, saying they would like to establish beneficiation initiatives if Namibia has the energy, and we are on track to have the first gas-to-power from Kudu in 2027,” he said.
Namibia petroleum operators are expected to continue with further drilling campaigns in the Orange Basin, with expected three-dimensional volume for onshore prospecting which will enhance Namibia’s oil and gas prospects.
In addition to the country’s sizeable oil and gas discoveries, the country’s major green hydrogen project is set to harness the country’s resources and diversify the economy.
Alweendo is said to be working closely with global players to create a green hydrogen hub in Namibia which would allow new businesses and stakeholders to set up large-scale projects within the market.
Presidential economic adviser and green hydrogen commissioner James Mnyupe, who is also attending the energy summit, said there’s a multitude of hydrogen projects in Namibia, but the biggest questions focus on whether supply chains are able to meet opportunities.
“… and whether the expected demand is ready to meet other forms of hydrogen production,” he said.
The session closed with the panel discussing Namibia’s renewable energy potential, highlighting the country’s role in the global energy transition.
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