Namibia Delays Lüderitz Port Upgrade Amid Oil Boom Prospects

Namibia Delays Lüderitz Port Upgrade Amid Oil Boom Prospects

Namibia Postpones Lüderitz Harbor Expansion Crucial for Oil and Gas Industry Growth

Namibia’s port authority has postponed plans to upgrade the southern harbor in Lüderitz, a key infrastructure project seen as vital for supporting the country’s fast-emerging oil and gas industry.

The Namibian Ports Authority (Namport) had invited proposals for a concession to establish an oil and gas supply base in Lüderitz.

However, the process was put on hold last week after the advertisement raised concerns among stakeholders.

“This setback will have an impact on the project’s timelines, but there is nothing we can do,” said Namport CEO Andrew Kanime, noting that the tender would be reissued at a later date.

Namibia has become one of Africa’s most closely watched energy frontiers following major offshore discoveries by TotalEnergies SE and Shell Plc in 2022.

Estimates suggest the country may hold up to 2.6 billion barrels of reserves, with exploration focused on the Orange, Lüderitz, Kavango, and Walvis basins.

TotalEnergies recently revealed plans for additional offshore drilling in South Africa’s Deep Western Orange Basin, which stretches into Namibian waters where significant finds have already been recorded.

According to SLR Consulting, TotalEnergies’ South African unit intends to drill up to seven wells about 211 kilometers (131 miles) off the coast of Saldanha Bay.

Although Namibia has yet to produce oil, forecasts indicate commercial output could begin by 2030. Upgraded port infrastructure will be essential for transporting equipment and supporting offshore operations.

Lüderitz, Namibia’s southernmost port, is considered strategically important as it lies less than half the distance to offshore discoveries compared to Walvis Bay, the country’s main port, according to Bloomberg.

“The project will continue—I just can’t confirm when the bid will be advertised again,” Kanime said.

Kanime added that the Lüderitz expansion requires both environmental clearances and heritage impact assessments, as the area includes the site of a former German colonial concentration camp.

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