November 01, 2024
Economy

‘Namibia oil discoveries have 11 billion barrels potential’

August 22, 2023
‘Namibia oil discoveries have 11 billion barrels potential’

The country’s recent oil discoveries could hold a staggering 11 billion barrels of reserves, National Petroleum Corporation of Namibia’s (NAMCOR) Acting Managing Director Shiwana Ndeunyema has revealed. 

Ndeunyema told a recent oil and gas gathering in Windhoek that towards the end of September, more explicit numbers will be revealed following the finalisation of the appraisal campaign.

He further stated that "we commissioned a study with Wood McKenzie, and these are the most conservative estimates. We're looking at about 11 billion barrels of reserve. And, of course, the Venus One X Discovery with 5.1 billion barrels."

Namibia's notable discoveries include the Graff-1X, Venus-1X, Jonker-1X, and Lesedi-1X. These discoveries are the product of partnerships involving major industry players such as Shell, Qatar Energy, Total, and Impact, in conjunction with NAMCOR.

Ndeunyema said the Graff-1X well, operated by Shell, Qatar Energy, and NAMCOR, alone holds an impressive 2.38 billion barrels of oil, with additional contributions from other wells.

"The Venus-1X discovery, spearheaded by Total, Impact, Qatar Energy, and NAMCOR, is another standout achievement, boasting a remarkable 5.1 billion barrels of oil within the Venus Fan region," he said.

Similarly, the Jonker-1X well, operated by Shell, Qatar Energy, and NAMCOR, contributes an estimated 2.5 billion barrels to Namibia's reserves, further underscoring the nation's energy potential.

"The Lesedi-1X discovery by Shell, Qatar Energy, and NAMCOR adds another 0.258 billion barrels to Namibia's growing oil reserves," said Ndeunyema

Collectively, these discoveries signal Namibia's promising role as a future oil and gas producer, with the capacity to significantly impact the global energy landscape.

This comes as Namibia could register a gross domestic product (GDP) of U$37 billion at peak production level from the country's newly discovered oil reserves.

The latest revelations follow authorities in the country being optimistic about the future economic prospects following the discovery of oil by Qatar Energy, Shell, and Total Energies in the Orange Basin, offshore Namibia near Lüderitz.

According to the Ndeunyema, at the peak of production level, the country will also benefit from direct jobs and local businesses will get a boost through procurement.

"It is good to generate more money, but this will be an enormous amount of money which needs to be wisely invested and one best way is through a sovereign fund. However, such funds if channelled back can also spike inflation as it will be too much, thus, it requires careful planning and execution to avoid a resource curse," he told a discussion on the Impact of Oil and Gas Discovery in Namibia hosted by the Stellenbosch Business School in Windhoek last month.

In addition, he said though oil brings economic sustainability, increased household spending due to high-income inflows can raise inflation and cost of living, as these investors will spend and get what they need at whatever cost thus raising prices of everything which then leads to widening the gap between the rich and poor. 

"About 3,600 jobs will be created, and if I was an artisan, I would start looking at subsea welding or other activities, so that I can prepare instead of focusing on the broader blank sector. It is therefore very important for the nation to acquaint itself for full benefits, especially the steel industry," he added. 

Ndeunyema said Namibia is poised to receive benefits of up to 54% when the production of the recently discovered oil reserves commences six years from now.

 

 

 

 

 

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Last modified on Wednesday, 23 August 2023 22:18
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