Namibia Expedites Orange Basin Discovery Development Towards First Oil

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In an exclusive interview with Energy Capital & Power, Maggy Shino, Petroleum Commissioner of Namibia’s Ministry of Mines and Energy, elaborates on the country’s proactive measures to expedite the development of significant discoveries in the Orange basin.

Shino sheds light on Namibia’s trajectory towards achieving its first oil, providing updates on the technical and commercial viability of recent discoveries. Since 2022, Namibia has witnessed a series of successful oil discoveries, marking a significant milestone in the country’s hydrocarbon exploration journey. Notably, discoveries such as Graff-1, Jonker-1X, La Rona-1, Lesedi-1X in PEL 39 by Shell Namibia Upstream BV, and Venus-1 in PEL 56 by TotalEnergies EP Namibia underscore the nation’s burgeoning potential in the oil and gas sector.

Reflecting on past challenges, Shino acknowledges the perseverance required to overcome setbacks, with nearly 37 dry wells preceding the recent discoveries. These breakthroughs validate Namibia’s oil and gas prospects while emphasizing the importance of sustained effort and market potential.

The government, in collaboration with international oil companies and partners, is committed to expediting the development of these discoveries. Appraisal activities, particularly in Graff-1 and Venus-1, have yielded promising results, indicating substantial reserves. Shell’s Graff-1 is estimated to hold approximately 200 MMboe, while TotalEnergies’ Venus-1 boasts a potential of up to 2 Bboe, with additional discoveries enhancing Namibia’s hydrocarbon portfolio.

Presently, four drilling rigs operate in Namibian waters, facilitating appraisal efforts and exploring additional potential in the region. The data gathered will inform the infrastructure development necessary for oil production. Foreign direct investment will be instrumental in establishing requisite infrastructure, paving the way for Namibia’s inaugural oil production.

Shino underscores the significance of further exploration, emphasizing the untapped potential in Namibia’s hydrocarbon basins. Beyond the Orange basin, regions such as Lüderitz, Walvis, and Namib Basins present promising opportunities, while onshore prospects like the Owambo and Nama basins warrant exploration. The Kavango sub-basin, in particular, has shown promising indications of an active petroleum system, indicative of Namibia’s rich resource endowment.

Addressing the Kudu development project, Shino reaffirms its strategic importance, highlighting Namibia’s commitment to gas-to-power initiatives. The project, with an estimated accumulation of 1.3 Tcf of natural gas, aligns with Namibia’s energy transition goals. Plans to leverage additional gas reserves underscore Namibia’s resolve to harness its energy potential sustainably.

Furthermore, Shino emphasizes the importance of local content and capacity-building initiatives. Namibia seeks to maximize local participation in the oil and gas industry, ensuring meaningful engagement and skill development. Robust regulatory frameworks and collaborative partnerships will facilitate knowledge transfer and foster a thriving domestic industry.

Looking ahead, Namibia aims to leverage its diverse energy resources to achieve energy security and advance its development agenda. With a holistic approach encompassing oil, natural gas, and renewable energy, Namibia is poised to emerge as a key player in Africa’s energy landscape, offering sustainable solutions and driving economic prosperity.