The Ministry of Mines, Energy and Industry has expressed confidence that Namibia will secure at least two final investment decisions (FIDs) in its emerging oil and gas sector by 2027, paving the way for production within the next five years.
Petroleum commissioner Maggy Shino confirms that the transition from exploration to production is becoming a reality following a series of successful discoveries.
“Oil and gas production in Namibia is no longer a myth that we have been preaching for the past 30 years since we started exploration. We have made the discoveries, we have appraised those discoveries, and at least for a bare minimum, we are going to get at least two FIDs that are going to come on board in the next two years,” Shino says.
Namibia’s recent petroleum discoveries, including the highly anticipated Venus project, are expected to enter the production phase by 2030, depending on successful investment and project execution.
Shino emphasises the need to develop local capacity to ensure Namibians play an active role in the industry rather than remaining spectators.
She called on the financial sector to support local businesses looking to enter the oil and gas value chain, urging financial institutions to take calculated risks in funding start-ups that will provide essential materials, logistics and services.
“Namibia’s local content policy is positioned as a key enabler in ensuring that the economic benefits of oil and gas production are retained within the country,” she says.
She also stresses the importance of local capital in maximising value and reducing dependence on international financing.
“If money is coming from the international market, the value and the benefit that’s going to be ripped out of that investment will go when the capital is coming from it,” she says, urging stakeholders to recognise the opportunity as a tangible and imminent one.
The announcement comes as French oil major TotalEnergies has postponed its final investment decision on its major offshore oil discovery in Namibia to 2026.
Chief executive Patrick Pouyanne confirmed the delay last month. The Venus oilfield, initially projected to produce 160 000 barrels per day, is now expected to reach 150 000 barrels per day, according to revised forecasts presented during the company’s investor day in October 2024.
Meanwhile, Portuguese energy company Galp Energia, in partnership with the National Petroleum Corporation of Namibia and Custos Energy, is advancing offshore oil exploration in Namibia’s Mopane complex under petroleum exploration licence 83.
The recent drilling of the Mopane-3X well confirmed substantial light oil and gas-condensate reserves across multiple reservoirs, bringing the company closer to a final investment decision.
– miningandenergy.com.na
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
