Namibia makes series of oil discoveries worth 10.5 billion barrels
- August 18, 2023
- Posted by: Quatro Strategies
- Categories: Africa, Oil & Gas
In the last 18 months, a series of oil discoveries have been made in the Orange Basin offshore Namibia, which could potentially hold a combined total of up to 10.5 billion barrels of oil, according to Namibia’s state-owned oil firm, Namcor. The figures are pre-appraisal estimates for oil and exclude associated gas volumes. The discoveries include the Venus field with an estimated 5.1 billion barrels, the Graff field with 2.4-2.6 billion barrels, the Jonker field with 2.5 billion barrels, and the Lesedi field with 0.3 billion barrels.
The Venus discovery, operated by TotalEnergies, is considered one of the largest hydrocarbon discoveries globally since 2015 and has the potential to be a supergiant field. The oil firm believes that these discoveries could result in first oil production by around 2029-2030, which could elevate Namibia into the ranks of the world’s top 15 oil producers by 2035.
Foreign oil companies such as Shell, Qatar Petroleum, and TotalEnergies are investing in Namibia’s emerging upstream oil and gas sector. These companies are expected to receive 36% of production revenues, while Namcor will hold a 10% stake. The remainder will go to the Namibian government, including a 5% royalty fee, a 35% corporate income tax, an additional profits tax ranging from 5% to 12%, an annual license fee, and a training contribution. These developments are projected to significantly boost Namibia’s economy, potentially doubling its annual GDP to $37 billion by 2040.
Namibia’s burgeoning oil discoveries hold significant promise for the country’s economic growth and its role in global energy markets, but as with any resource development, there are also environmental and social considerations that need to be carefully managed.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You'll get daily industry insights on
Energy, Cleantech, Oil & Gas, Mining, Defense, Aviation, Construction, Transportation, Online Retail, Bigtech, Finance and Politics of Business
Read more insights
Taiwan shifts supply chains to India as US-China trade tensions escalate
The economic ties between Taiwan and India are strengthening as Taiwanese firms increasingly shift their supply chains from China to India. This movement is driven by rising global trade tensions, particularly between the United States and China, which have prompted Taiwanese companies to seek alternative locations for their operations…
Brussels wins green light for Mercosur deal after 25 years talks
EU governments have provisionally opened the door to signing the EU-Mercosur free trade agreement, a pivotal step that would make it the bloc’s largest trade accord in terms of tariff reductions and a rare example of the EU pushing through a major liberalization package despite intense farm and environmental opposition.
The political clearance, granted on Friday by member states, does not bring the agreement into force; it authorizes the Union to proceed toward signature, after which ratification by the European Parliament remains necessary.
Iran conflict pushes Trump to relax a core protectionist shipping law
The Jones Act waiver shows how quickly the Trump administration has moved from ideological preference to crisis pragmatism under the pressure of the Iran war. Washington has granted a 60-day waiver of the century-old law, temporarily allowing foreign-flagged ships to carry fuel, fertilizer and other goods between U.S. ports in response to higher prices and supply disruptions linked to the conflict.
The move is significant not because it will dramatically reduce costs on its own, but because it signals that the administration now sees domestic shipping constraints as one of the bottlenecks worsening the economic fallout from the war.