APA-Cape Town (South Africa) Namibia will be one of the main attractions at the 2023 Africa Energy Week (AEW) set for Cape Town in October, thanks to the recent rich pickings of oil reserves, attractive fiscal policies and market-focused regulation.
Known for its stunning landscapes and rich wildlife, Namibia is on the verge of becoming one of Africa’s leading oil and gas producers.
The southern African country has made several oil discoveries over the past year, attracting the attention of global energy giants and investors.
AEW organisers African Energy Chamber (AEC) said Namibia is unique in that its energy market “is relatively undeveloped and yet offers significant potential across every facet of the natural and mineral resource sectors.”
The latest discovery was announced in July 2023 by Qatar Energy, which found light oil and gas at the Jonker-1X well in Block 2914A, offshore Namibia. This follows the previous discoveries by Shell and TotalEnergies at the Graff-1X and Venus-1X wells, respectively, in early 2022.
These finds have sparked an investor frenzy, with new oil and gas exploration and production companies entering the market and active explorers accelerating exploration campaigns, it said.
Canadian explorer ReconAfrica is progressing with its onshore upstream campaign in PEL 73 – announcing an updated prospective resource estimate of 22.4 trillion cubic feet last month.
French major TotalEnergies is currently engaged in a multi-well appraisal and exploration drilling programme in Block 2913B; while American firms ExxonMobil and Chevron are expanding their Namibian acreage.
These discoveries have confirmed Namibia’s potential as a frontier hydrocarbon market, with an estimated 11 billion barrels of oil and 2.2 trillion cubic feet of gas reserves.
Namibia’s government has been supportive of the oil and gas exploration activities, offering attractive fiscal policies and market-focused regulations.
Downstream, the government is working towards putting the right infrastructure in place to support long-term economic growth. With the Southern African region experiencing an energy crisis, the Namibian government is prioritizing power generation, with future oil and gas resources playing a role.
Currently, the country’s gas-to-power strategy is spearheaded by the 450-megawatt Kudu project, a major initiative aimed at leveraging offshore gas reserves for power generation.
“Namibia is taking all the right steps to establish a strong, competitive and long-lasting energy sector in-country,” AEC executive chairman NJ Ayuk said.
He added: “From implanting market-focused regulation to collaborating with global energy companies and regional governments to opening up the sector to private sector participation, the country is on the precipice of transformative growth.”
The National Petroleum Corporation of Namibia (NAMCOR), the state-owned oil company, has been an active partner in the exploration projects, holding stakes in several blocks and facilitating data sharing and technical assistance.
Namibia’s historic energy potential will be highlighted at the 2023 AEW taking place in Cape Town from October 16-20.
A dedicated Namibian country spotlight session will provide stakeholders with the information and tools they need to invest and join in the promising Namibian energy market.
Led by a delegation of high-level industry professionals including Namibia’s Minister of Mines and Energy Tom Alweendo and representatives from NAMCOR, the country spotlight will explore all of the reasons why Namibia is the next big hydrocarbon player in Africa.
JN/APA