Namibia: A Rising Player in the Oil and Gas Industry
The Namibian Ports Authority (Namport) has recently put out a call for proposals for a concession to establish an oil and gas supply facility in Lüderitz. However, the process faced a setback last week due to concerns raised by various parties.
Namport’s Chief Executive Officer, Andrew Kanime, acknowledged the delay and mentioned that it would impact the project’s timelines. Despite this setback, Namibia is positioning itself as a key player in the energy sector, particularly in oil production.
Following significant discoveries by TotalEnergies SE and Shell Plc in 2022, Namibia is estimated to have reserves of up to 2.6 billion barrels. The country’s exploration hotspots include the Orange, Luderitz, Kavango, and Walvis basins.
TotalEnergies’ plans for offshore drilling exploration in the Deep Western Orange Basin, which extends into Namibian waters, further highlight the country’s potential in the oil and gas industry. With forecasts suggesting that Namibia could commence commercial oil production by 2030, the need for enhanced infrastructure, especially upgraded ports, becomes paramount.
Lüderitz, located in southern Namibia, is considered crucial for oil production due to its proximity to offshore reserves. This port is closer to the finds than Walvis Bay, Namibia’s main port, making it a strategic location for the industry.
Despite the challenges faced in the concession process, Kanime affirmed that the project would proceed, albeit with uncertain timelines. Environmental and heritage impact assessments are also essential for the Lüderitz repairs, given the presence of a historic German colonial army concentration camp in the area.
As Namibia continues to navigate its path towards becoming a significant player in the oil and gas sector, collaborations between stakeholders and a focus on sustainable development will be key to unlocking the country’s full potential.
