Most oil-producing African nations are situated in the continent's Western, Northern, and Central regions, the Southern and Eastern parts, hence scarcely boast of this precious resource. Save Angola, there is no Southern African nation that produces a significant quota of oil to contribute to the global market. However, the discoveries made in recent years, could ensure that a paradigm shift is would ensue with countries like Namibia taking center stage.
A report by Reuters revealed that there have been several oil explorations by major oil conglomerates in the Southern African country of Namibia in recent years. In 2023 it was reported by the National Petroleum Company of Namibia (NAMCOR) that Light oil had been discovered 270 kilometres (km) off the coast of Namibia.
While the country is yet to produce any oil, Energy companies such as Total Energies (TTEF.PA) and Shell (SHEL.L) have discovered an estimated to be 2.6 billion barrels. Chevron is looking to make its discoveries in the country by 2025.
These discoveries have led to the projection that the country would be eligible to produce oil by 2030. Some of the discovery hotspots in the country include Orange Basin, Luderitz, Kavango, and Walvis basins.
Oil Firms in the Hunt for oil in Namibia
Major oil firms looking to explore Namibia's potential for oil production include Italy's Eni, which agreed on a farm-in agreement for a 42.5% interest in an offshore Orange Basin license. Eni is doing this in partnership with BP, and exploration firm Rhino Resources.
The Portuguese oil firm, Galp tested its Mopane-1X and Mopane-2X wells and estimated in April that the Mopane field might contain at least 10 billion barrels of oil after a first round of exploration. The hotspot; PEL 83 appears to be one of the largest reserves discovered in the Orange Basin.
On the other hand, Shell is exploring offshore oil and gas in PEL 39 and has opened a new tab in the Orange Basin with joint venture partners QatarEnergy and Namcor.
PEL 39 encompasses 12,000 square km and covers 7 wells that have been drilled. Its Graff well has the potential to store 2.38 billion barrels of oil, with the Jonker-1X well holding an additional 2.5 billion.
At the start of the year, Total Energies agreed to buy an additional 10.5% stake in Block 2913B and 9.39% in Block 2912. The firm plans to spend around 30% of its $1 billion exploration and appraisal budget in Namibia in 2024.
It launched operations in Namibia in 1964 and presently has two deep offshore exploration zones. The French oil and gas magnate has a 40% operating interest, with QatarEnergy, Impact Oil and Gas, and Namcor holding 30%, 20%, and 10% shares, respectively.
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