Namibia Emerges as a New Frontier for Oil Production in Southern Africa
While most oil-producing African nations are located in the Western, Northern, and Central regions of the continent, the Southern and Eastern parts have largely been devoid of this valuable resource.
Except for Angola, no Southern African nation has contributed significantly to the global oil market. However, recent discoveries suggest a potential shift, with Namibia poised to become a key player.
A report by Reuters revealed that major oil conglomerates have been actively exploring Namibia’s oil potential in recent years. In 2023, the National Petroleum Company of Namibia (NAMCOR) announced the discovery of light oil 270 kilometers off the Namibian coast.
Though Namibia has not yet begun oil production, companies like Total Energies and Shell have discovered an estimated 2.6 billion barrels of oil. Chevron is also planning to make its discoveries in the country by 2025.
These findings have led to projections that Namibia could start producing oil by 2030. Key areas of interest for these discoveries include the Orange Basin, Luderitz, Kavango, and Walvis basins.
Major Oil Firms Exploring Namibia’s Potential
Several major oil firms are keen to tap into Namibia’s oil potential. Italy’s Eni has entered a farm-in agreement for a 42.5% interest in an offshore Orange Basin license, partnering with BP and exploration firm Rhino Resources.
Portuguese oil company Galp tested its Mopane-1X and Mopane-2X wells and estimated in April that the Mopane field might contain at least 10 billion barrels of oil, making PEL 83 one of the largest reserves discovered in the Orange Basin.
Shell is also exploring offshore oil and gas in PEL 39, in collaboration with QatarEnergy and Namcor. PEL 39 covers 12,000 square kilometers and includes seven drilled wells.
The Graff well alone has the potential to store 2.38 billion barrels of oil, while the Jonker-1X well could hold an additional 2.5 billion barrels.
At the beginning of the year, Total Energies agreed to acquire an additional 10.5% stake in Block 2913B and 9.39% in Block 2912. The company plans to allocate around 30% of its $1 billion exploration and appraisal budget to Namibia in 2024.
Total Energies launched its operations in Namibia in 1964 and currently holds two deep offshore exploration zones. The French oil and gas giant has a 40% operating interest, with QatarEnergy, Impact Oil and Gas, and Namcor holding 30%, 20%, and 10% shares, respectively.
With these substantial investments and discoveries, Namibia is on the brink of transforming its oil industry, potentially becoming a significant contributor to the global oil market and reshaping the economic landscape of Southern Africa.
