In a significant shift in oil exploration dynamics, Namibia has emerged as a promising frontier for international oil companies (IOCs), drawing attention away from Nigeria, Africa’s largest oil producer, which faces challenges in attracting investments into its energy sector.
With a population of approximately three million people, Namibia, despite having yet to produce any oil or gas, has become an exploration hotspot following offshore discoveries by major players such as TotalEnergies and Shell. These discoveries have sparked interest in accelerating the country’s journey towards its first oil output.
TotalEnergies’ CEO, Patrick Pouyanne, highlighted the substantial oil potential in Namibian waters, noting significant discoveries made by various companies, including Shell and Galp Energia SGPS SA. Pouyanne drew parallels with the situation in Guyana, where Exxon Mobil Corp.’s offshore discoveries propelled the nation to become the world’s fastest-growing economy.
Over the past two years, TotalEnergies, Shell Plc, and Galp Energia SGPS SA have made noteworthy finds off Namibia’s southwest coast, transforming the country into a focal point for exploration activities. While no field has yet received approval for development, optimism abounds in Namibia that a similar economic boom to that experienced in Guyana could be on the horizon.
Pouyanne cautioned, however, that the complexity of optimizing multiple projects led by various operators in Namibia might pose challenges compared to the streamlined approach adopted by Exxon in Guyana.
TotalEnergies aims to approve its first oil development in Namibia at the Venus discovery by the end of next year. The project could involve a floating production, storage, and offloading vessel with a capacity of up to 180,000 barrels per day (bpd). The company plans to continue exploration activities in its blocks and remains optimistic about the potential for additional discoveries, particularly in light of Shell’s recent find in an adjacent area.
Namibian officials have sought advice from Guyana regarding oil developments, underscoring the nation’s commitment to learning from successful precedents and maximizing the benefits of its burgeoning oil industry.
Meanwhile, Nigeria, despite its vast oil reserves, is facing challenges in fully leveraging its resources. Bureaucratic bottlenecks, contracting delays, and low local participation have hindered Nigeria’s ability to optimize its oil sector’s potential, underscoring the contrasting fortunes of the two African nations in the oil exploration arena.
As Namibia gains momentum as a new frontier for oil exploration, Nigeria grapples with structural impediments, highlighting the shifting dynamics in Africa’s oil landscape.
REF: Businessday
