Namibian discoveries boost potential for investments
Positive developments in offshore gas
NAMIBIA: The country’s status as an oil and gas producer is gaining momentum with the announcement of the discovery of light oil in the Orange Basin.
This represents Namibia’s sixth commercial oil and gas discovery - following hydrocarbon discoveries made by TotalEnergies in PEL 56 and Shell in PEL 39 and was announced by Portuguese multinational energy corporation Galp. The light oil was discovered at the Mopane-1X exploration project - located in Petroleum Exploration License (PEL) 83 in the Orange Basin.
Galp reports that the discovery, made in reservoir-bearing sands of high quality, prompts the company to initiate an assessment of the reserves' commercial viability through a planned drill stem test in the coming weeks. Recognizing the immense potential of Mopane-1X and Namibia's Orange Basin for world-class discoveries, Galp and its partners – Namibia’s national oil company (NOC) NAMCOR and Custos Energy - are extending their drilling campaign with upcoming activities in the Mopane-2X well
Commenting on the discovery, the African Energy Chamber (AEC) Executive Chairman, NJ Ayuk credited the Namibian government for providing a stable investment environment.
“This is an example of an African country, the ministry and the NOC working hand-in-hand to enable explorers. These discoveries do not just happen because of the geology itself, but credit should be given to the hard work that has been put in by the Namibian government through its ministry and NOC in constantly and consistently keeping a stable environment, encouraging companies, listening to investors, and giving investors the confidence to pour in money and get massive discoveries. Namibia’s example should be a lesson to many African states when it comes to exploration,” he said.
The AEC believes that the discovery is a massive milestone for Namibia, Galp, Namcor and its partners on PEL 83. In addition to fortifying local and regional energy security, the AEC foresees Galp’s discovery and Namibia's burgeoning oil and gas industry playing a pivotal role in enhancing the country's economic strength and gross domestic product growth.
This will be achieved through bolstering energy market resilience, creating job opportunities, and expanding export revenue. Notably, with approximately 45% of the Namibia's population currently lacking access to electricity, discoveries like Galp's will be instrumental in realizing the government's objective of universal energy access by 2040 while ensuring the region has access to affordable energy.
The AEC continues to promote the commercial potential of offshore oil and gas in Africa and is optimistic about Namibia’s hydrocarbon future.
“We stand with Namibia in its endeavour to explore and exploit oil and gas resources to address energy security issues and maximize industrialization. Namibia’s oil and gas resources will be key to expanding economic growth, driving diversification and advancing socioeconomic development, both in Namibia and across the southern African region,” concluded Ayuk.
678