Galp discovery big win for Namibia

Galp Energia’s discovery of light oil in its Mopane-1X well in the Orange Basin offshore Namibia represents a substantial stride in positioning the country as a major energy player in Africa and on the global stage, aligning with recent successes in the country’s upstream sector.

This statement was made by the executive chairman of the African Energy Chamber (AEC), NJ Ayuk, following Galp’s announcement.

“Representing Namibia’s sixth commercial oil and gas discovery – following hydrocarbon discoveries made by TotalEnergies in PEL 56 and Shell in PEL 39 – the Galp discovery further elevates Namibia’s status as a frontier oil and gas market,” Ayuk said on the AEC’s website.

Galp reported that the discovery, made in reservoir-bearing sands of high quality, prompted the company to initiate an assessment of the reserves’ commercial viability through a planned drill stem test in the coming weeks.

Recognising the immense potential of Mopane-1X and Namibia’s Orange Basin for world-class discoveries, Galp and its partners – Namibia’s national oil company, Namcor, and Custos Energy – are extending their drilling campaign with upcoming activities in the Mopane-2X well.

‘Massive milestone’

The AEC believes that the discovery is a massive milestone for Namibia, Galp, Namcor and its partners on PEL 83, Ayuk said.

“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,” he added.

Ayuk continued: “This will be achieved through bolstering energy market resilience, creating job opportunities and expanding export revenue.”

With approximately 45% of the Namibia’s population currently lacking access to electricity, discoveries like Galp’s will be instrumental in realising the government’s objective of universal energy access by 2040, while ensuring the region has access to affordable energy, Ayuk said.

Example

“This is an example of an African country, the ministry and the Namcor working hand-in-hand to enable explorers,” he said, adding: “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 Namcor 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.”

According to Ayuk, Namibia’s example should be a lesson to many African states when it comes to exploration.

“The discovery of light oil at Mopane-1X further demonstrates the commercial potential of offshore oil and gas in Africa. With six discoveries made in less than two years, Namibia is a testament to the role and future oil and gas plays in Africa.

“The AEC is optimistic about Namibia’s hydrocarbon future and urges exploration companies and government to work together in navigating the legal, environmental and investment requirements to fast-track the development of these critical resources,” Ayuk said.

“We stand with Namibia in its endeavor to explore and exploit oil and gas resources to address energy security issues and maximise industrialisation. 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.