The prospects for offshore oil and gas exploration have resulted in Namibia becoming a hotspot for hydrocarbon investment in recent years.
Energy Capital and Power, an investment company for the energy sector said meanwhile the country’s ambition to become a global hub for green hydrogen development, on the back of abundant, co-located solar and wind resources, is poised to support value-added industrialization, economic transformation, and regional integration by stimulating exports to international markets. “These developments and more will be unpacked at the Investment Energy (IAE) forum in Paris, where a Namibian spotlight session establishes Namibia as the premier destination for diversified energy investments,” they added.
They said a quintet of major oil discoveries in Namibia’s Orange Basin have placed the country’s upstream oil and gas sector on the precipice of transformation. “The Graff-1, La-Rona-1, Jonker-1X, Lesedi-1X and Venus-! Discoveries were made between 2021 and 2023 through a series of exploration campaigns led by supermajors Shell and TotalEnergies and state-owned QatarEnergy,” they said.
They said last month, TotalEnergies announced their continued exploration in the offshore Orange Basin, with appraisal drilling being conducted south and north-west of the Venus-1 discovery, and these efforts have already resulted in the company intersection hydrocarbon bearing intervals in the Mangetti-1X prospect, drilled 35km from the Venus-1 discovery.
Energy Capital and Power are the organizers of IAE 2024 and said it is an exclusive forum designed to facilitate investment between African energy markets and global investors, taking place from 14 to 15 May in Paris. “The event offers delegates two days of intensive engagement with industry experts, project developers, investors, and policymakers,” they informed.
They explained that in addition to the Orange Basin, Namibi’s onshore Kavango Basin is thought to hold more than 30 billion barrels of crude oil. “Last year, in November, ReconAfrica and their partner NAMCOR gained approval for the second renewal exploration period on PEL 73 in the basin, running from January 2024 to January 2026. During this period, ReconAfrica will lead drilling to test the Damara Fold Belt and oil-prone rift plays in the basin,” they said.
They said meanwhile, oil and gas company 88 Energy signed a farm in agreement with Monitor Exploration last November to earn up to 45% non-operated working interest on the onshore PEL 93 in the Owambo Basin and the agreement will involve the acquisition of approximately 200 line kilometers of low-impact 2D seismic data in mid-2024, along with a potential initial exploration well targeting the Damara gas play in 2025.
“With production expected to start in 2026, the Kudu Conventional Gas Field, one of Namibia’s most prolific assets, is currently in its FEEd stage and will be operated by oil and gas company BW Energy. Home to nearly 600 billion cubic feet of natural gas reserves, the development is expected to reach peak production of 64 million cubic feet per day,” they emphasized.
They further highlighted that exemplifying the country’s integrated energy strategy, this exploration blitz has the potential to make Namibia one of Africa’s major oil and gas producers, while a wave of new seismic activity is poised to attract new independent and junior explorers to its frontier market. “Boasting an abundance of solar and wind resources, Namibia’s plans to expand power generation capacities are expected to see a share of 60% renewables by 2020. Within this time frame, Namibia aims to install a total of 510 MW of grid-connected renewable energy capacity,” they said.
The Company said this ambitious goal will be driven through competitive tenders from local and international IPPs that will be subject to PPAs with Namibia’s state-owned power utility NamPower and regional energy distributors. “Last December, the government launched a tender inviting consultants to provide services for renewable energy projects spanning solar PV, wind, and battery energy storage systems. Services will include environmental and social impact assessment and site studies for several upcoming solar PV and battery energy storage systems projects,” they emphasized.
They further informed that last May, Namibia commissioned sub-Saharan Africa’s largest green hydrogen production plant, and the N$ billion project, led by green hydrogen development company Hyphen Hydrogen Energy, will be capable of producing 300 000 tons of green hydrogen and ammonia and will feature wind and solar plants with a combined capacity of 7 GW. “This year the country is expected to complete development of a 5 MW pilot plant, which will act as a testing facility for hydrogen production and handling. Hyphen Hydrogen Energy also signed a deal with finance vehicle SCG Namibia One Fund in December 2022 to secure £23 million in capital, while collaborating with Japan’s ITOCHU Corporation to enhance the company’s technical capabilities for successful project deployment,” they highlighted.
They explained that with production cost estimated as low as N$2 per kilogram, Namibia’s green hydrogen is poised to become the cheapest in the world, making the country an attractive partner for energy-hungry countries amid the energy transition, “As a result, Namibia could boost its GDP by N$15 to 20 billion per year, create over 100 000 domestic jobs, export 14 GW of clean power to the Southern African Power Pool and reduce GHG emissions by 45 to 60 million tons of CO2 per year by 2040,” they concluded.
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