Namibia is on the brink of an economic transformation, driven by significant oil discoveries off its Atlantic coast.
At the bustling Walvis Bay port, workers are preparing for a surge in activity as oil exploration equipment is staged alongside typical consignments of minerals and vehicles.
Recent successes by TotalEnergies SE, Shell Plc, and Galp Energia SGPS SA have highlighted Namibia’s potential as a major new oil province.
Since early 2022, drilling in the region has achieved a near-record success rate of 80%, fueling excitement and investment.
Maggy Shino, Namibia’s petroleum commissioner, emphasized the country’s ambition to become a regional energy hub, which could double or triple its economy.
“We are preparing for massive activity in Namibia in the coming years, with production anticipated to begin by 2025 to 2027,” Shino said at a conference in Windhoek.
While the country awaits the commercial viability of these discoveries, TotalEnergies aims to approve development at the Venus field by the end of the year.
CEO Patrick Pouyanne has drawn parallels to Guyana’s recent oil boom, suggesting Namibia could see similar growth.
However, the rapid development presents challenges. Namibia must build significant infrastructure, including port upgrades and new facilities to support drilling operations.
State-owned Namport is investing over $2.1 billion to expand its ports, and companies like Halliburton Co. and Baker Hughes Co. are establishing local facilities.
The smaller port of Luderitz, closer to the discoveries, is also set to play a larger role in the future. As Namibia’s oil potential garners international attention, major oil companies are positioning themselves for involvement.
Galp, for instance, is exploring options to sell a stake in its promising discovery, estimated at 10 billion barrels.
Chevron, BP, Eni, and TotalEnergies are actively expanding their interests, reflecting the high stakes and costs associated with deep-water drilling.
Wood Mackenzie analyst Ian Thom notes that only the largest companies will likely navigate the challenges of deep-water operations.
Namibia’s burgeoning oil industry is attracting global interest, with potential partnerships and investments poised to reshape the nation’s economic landscape.
