Exploration activity in Namibia’s Orange Basin has led to a significant rise in foreign direct investment (FDI), with net inflows reaching N$12.6 billion in the fourth quarter of 2024, according to the latest quarterly bulletin from the Bank of Namibia (BoN).
BoN attributed the quarterly growth to increased equity injections from oil exploration operators, noting that the expansion of oil exploration activities in the Orange Basin, along with the arrival of new operators, played a key role in driving this surge.
However, the services account saw a rise in net outflows, which increased by N$4.6 billion to N$6.8 billion compared to the previous quarter.
This increase was largely due to higher payments for business services, linked to the heightened oil and gas exploration activities.
The FDI surge coincided with the arrival of the Noble Venturer drillship in Walvis Bay during Q4 2024. The drillship began drilling operations for Rhino Resources on Block PEL-85, with the campaign targeting the Volans-1 and Sagittarius-1 prospects.
The drilling operation, expected to last at least 100 days, followed the approval of Rhino Resources Namibia Ltd.’s Environmental Clearance Certificate (ECC) by the Ministry of Environment, Forestry, and Tourism.
The ECC permits the drilling of ten exploration and appraisal wells off Namibia’s southern coast. This drilling campaign was expected to inject approximately N$1.8 billion (US$94 million) into the local economy, benefiting communities in Lüderitz and Walvis Bay.
In the same period, ReconAfrica completed the Naingopo exploration well in Namibia’s PEL 73, reaching a depth of 4,184 meters, surpassing its original target of 3,800 meters. The company is currently evaluating the subsurface data, with preliminary results expected soon.
Harmattan Energy, a subsidiary of Chevron, also drilled the Kapana 1-X exploration well in the Orange Basin under Petroleum Exploration Licence (PEL) 90. Although the well reached total depth 25% ahead of schedule, it did not yield commercial hydrocarbons.
However, BoN noted that the drilling provided valuable geological insights, strengthening confidence in future exploration in the region.
Portuguese oil major Galp Energia reported that its investments in Namibia reached N$6 billion (€312 million) in 2024, primarily for exploration and appraisal activities.
In its fourth-quarter and full-year financial report, Galp disclosed a total economic capital expenditure of €1.29 billion, with substantial allocations for Namibian exploration, upstream developments in Brazil, and industrial low-carbon projects.
Galp holds an 80% stake in Petroleum Exploration Licence 83 (PEL 83), which spans nearly 10,000 square kilometers in the Orange Basin, near the border with South Africa.
TotalEnergies also intensified its offshore exploration efforts in the Orange Basin during Q4 2024. In October, the company began drilling the Tamboti-1X well in Block 2913B, targeting a billion-barrel prospect using the DeepSea Mira rig. By November, TotalEnergies had increased its stake in Blocks 2912 and 2913B following additional acquisitions from Impact Oil & Gas. The company is advancing its Venus discovery, with a development scheme expected by late 2025.
