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Namibia cemented its reputation as Africa’s premier exploration hotspot earlier this year when Galp discovered hydrocarbons in the Mopani formation in the offshore Orange Basin, estimated to hold at least 10 billion barrels of oil and gas equivalent. Maggy Shino (photo), commissioner for petroleum at the Namibian Ministry of Mines and Energy, will lead a discussion on the country’s evolution towards a hydrocarbon producer and the status of existing high-profile discoveries by Shell and Total Energy at Africa Energy Week (AEW): Investing in African Energy 2024, scheduled for November 4-8 in Cape Town.
Namibia, a frontier market with a world-class mature petroleum system, has attracted the attention of major exploration companies, with first oil expected from its deepwater Orange Basin in 2030. Total Energy and Shell are evaluating their respective discoveries – Total Energy’s Venus-1 discovery is estimated to contain more than 5 billion barrels of reserves alone – and Chevron will drill its first exploration well on PEL 90 by the end of 2024. Onshore, ReconAfrica recently launched a multi-well exploration campaign in the Kavango Basin on PEL 73 with the drilling of the Naingopo-1 well. The area is home to the highly prospective Damara Fold Belt, estimated to contain more than 22 trillion cubic feet of undiscovered gas.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and governments and has become the official venue for signing African energy deals. Visit www.AECWeek.com Learn more about this exciting event.
The Ministry actively promotes oil and gas exploration and evaluation activities
Namibia has seen a series of acquisitions in recent months, reflecting growing interest in its offshore fields. Last month, BW Energy acquired PEL 73, contributing up to $141 million in working capital and providing for the company’s participation in two Damara Fold Belt exploration wells and a 3D seismic program. In May 2024, Azule Energy acquired a 42.5% interest in Orange Basin Block 2914A from Rhino Resources Namibia, while Eco Atlantic announced the acquisition of Orange Basin Block 1 from Tosaco Energy in June 2024. Global Petroleum is currently in early commercial negotiations for a potential acquisition agreement for its PEL 94 Block in the offshore Walvis Basin.
Commissioner Shino will also present Namibia’s long-term gas development plans. The country plans to make a final investment decision on the Kudu Conventional Gas Development Project this year, with production expected to start in 2026. The much-anticipated project, currently in the front-end engineering and design phase, will deliver natural gas to 885 MW combined cycle gas turbines, increasing domestic power generation capacity and creating opportunities for diversified industries and economic growth.
To support its long-term production targets, the Ministry of Mines and Energy is advancing petroleum revenue management legislation and developing a dedicated local content policy prior to first production. These measures are designed to maximize the benefits of Namibia’s extractive industries by ensuring effective revenue management and creating opportunities for the local workforce and value-added activities. During AEW: Investing in African Energy, Namibia’s industry milestones and future plans will be unveiled, affirming the role of public-private partnerships, local content policy development and continued foreign investment in the rapid development of the country’s hydrocarbon resources.
NJ Ayuk, Executive Chairman of the African Energy Chamber, said: “Continued discoveries in the Orange Basin highlight Namibia’s potential to stimulate broad-based economic growth and achieve energy security, which will benefit not only the country but the entire Southern African Development Community region. The Ministry’s proactive approach in advancing oil and gas exploration and appraisal activities and local content policy will be critical to achieving these goals and setting an example for other emerging producers.”
At the AEW: Investing in Africa Energy 2024 Summit, Commissioner Shino and the Namibian delegation will present ongoing projects, discuss new exploration opportunities, and engage with global industry leaders and stakeholders to further Namibia’s oil and gas ambitions. The event promises to be a key platform to showcase Namibia’s potential and attract new investment into its thriving upstream sector.
Source: African Energy Chamber.
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