Nam to fast-track oil programme

Sector’s full potential harnessed
A high-level delegation from Namibia attended the Invest in African Energy Forum in Paris.
Namibia is targeting its first oil production by 2029 and intends becoming one of the world’s top oil producers by 2035.

Speaking at the Invest in African Energy Forum in Paris last week, a high-level delegation from Namibia’s National Petroleum Corporation of Namibia (Namcor) delivered presentations on the investment and partnership opportunities available in the country.

The forum took place ahead of the much-anticipated African Energy Week (AEW) conference and exhibition scheduled for 16 to 20 October in Cape Town. The AEW is the African Energy Chamber’s (AEC) annual energy event.

The acting managing director Shiwana Ndeunyema of Namcor, said the state-owned enterprise (SOE) was “now looking at harnessing the full potential of the sector.”

In 2022 and 2023, Namibia witnessed three large-scale oil and gas finds by energy majors Shell, TotalEnergies and Qatar Energy. The commercial viability of the finds must still be confirmed.

Ndeunyema said the discoveries “will place the country as one of the top oil producers by 2035,” while doubling Namibia’s gross domestic product (GDP) in the next ten years.

Development

As such, Namcor is accelerating the development of the finds, said the SOE’s executive for upstream exploration, Victoria Sibeya.

The company is “talking about a fast-tracked programme, if the appraisal programme is a success.” Sibeya added that “we are targeting first oil production by 2029”.

In addition to the 2022/23 finds, Sibeya provided insight into the Kudu gas project, stating that Namcor is “planning to produce 400 MW of power from gas, with operations starting in 2026”.

She said the pre-front end engineering and design (FEED) study has been completed. The FEED study is expected to be completed by the first quarter of 2024.

Power generated from the project will be used for domestic purposes, as well as for export to regional markets.

Fully integrated

Namibia’s investment potential transcends oil and gas, with the country making strides towards establishing itself as a global hydrogen producer and exporter.

To this effect, Namibia-global partnerships have played a fundamental role, and as the green market opens up even further, opportunities for bi- and multilateral partnerships are growing.

Namcor “is in the process of establishing itself as a fully integrated energy company,” and that they are “actively engaging in renewable energy, green hydrogen and R&D [research and development] programmes”, Ndeunyema said.

“We are working on establishing three strategic partnerships on green hydrogen. We are also looking at creating more synergies between oil and gas and green hydrogen,” he added.

Namibia’s frontier potential will be on display during this year’s edition of AEW 2023 – the biggest energy event taking place on the African continent.

Since Namibia’s 2022 discoveries, the AEC has worked closely with government to secure new investment across the energy value chain.

Local content

Local content was one of the hot topics at last week’s African Energy Forum in Paris, with speakers emphasising the role joint ventures play in strengthening Africa’s energy industry.

“We are not talking local ownership. What we are saying is that the investment you make in education and skills transfer represent part of the local content conditions for companies in a country,” said Florival Mucave, executive chairman of the Mozambique Oil & Gas Chamber.

Across the continent, governments have begun to implement local content policies that ensure energy investments translate into tangible opportunities for local communities and businesses. According to Viannet Okume, administrator director general at Vaalco Gabon SA: “The government has a responsibility and it is included in hydrocarbon law.”

“What is important is to have the political will by the players and sub-contractors. You can have all the legislation, but if laws are too harsh, investors will be deterred. You have to find the right balance,” Franck Pliya, vice president of Business Development West/Central Africa, noted.

Opportunities

Beyond legislation, Pablo Memba, CEO of Grupo Memba, highlighted the role training and capacity building plays.

While the government needs to have the right laws in place, local players need “opportunities to be part of the game, not just as a local partner”. He added that: “The key is not only to make money, but to train others. If you don’t train people who work with you, it will be dead end.”

According to David Pappoe jnr, the president of the AEC Ghana, despite opportunities for local players opening in the energy sector, “local companies do not know how to [participate], and they do not have access to finance. Governments need to enforce education in this area.”

Expanding on the role capacity building plays, Mohamed Fouad, founder and managing director of Egypt Oil & Gas and the secretary general of the Egyptian Gas Association, said: “No sustainable growth will happen without capacity building.

“Making energy poverty history by 2030 cannot happen without capacity building. If Africa wants to depend on itself, you need to develop the skills.” – African Energy Chamber

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