Deputy Minister of Mines and Energy Kornelia Shilunga says while significant oil investment is expected to flow into Namibia, it is not a given that prosperity will follow.
Shilunga was speaking at the Copper Festival in Tsumeb, held under the theme ‘Empowering Entrepreneurship in a Sustainable Namibia’.
Last year, oil and gas were discovered in commercial quantities offshore the Namibian basins by Total Energies and Shell, together with their partner Namcor.
Currently, oil companies are conducting appraisal work to ascertain the quantities and quality of the discovered oil before they can design the development plant.
Deputy Minister of Mines and Energy Kornelia Shilunga says the oil and gas discovery raised expectations for significant revenue flow and employment opportunities for Namibians.
“Indeed, the discovery holds great potential to improve our socioeconomic challenges; however, I must highlight to you that the development of an oil sector is inherently associated with uncertainties and complexities. One can think of uncertainties associated with issues of quality, quantity, production, and oil price, and some of these uncertainties remain over the lifetime of an oil production project.”
She says expectations and aspirations should be managed and be cognisant of the sociopolitical and economic complexities that can arise because of an oil discovery and subsequent production.
“Prosperity will follow only if the investment and the consequent oil revenue are well managed; if not, the subsequent result could well worsen the social and economic position.”
The Copper Festival kick started on Wednesday with a number of conferences where speakers will share information, encourage, motivate, and educate the youth about the businesses they choose to venture into.
The festival ends today with a music concert.
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