IN a move to bolster Namibia’s burgeoning offshore exploration activities, energy technology company Baker Hughes has announced plans to establish a new liquid mud plant and a separate assembly, maintenance, and repair base at Walvis Bay. The initiative aims to address the challenges posed by an influx of drill rigs and support vessels, which threaten to overwhelm the country’s existing port infrastructure.
‘It will be drilling fluids made in Namibia for Namibian wells, an important step in building its oil and gas industry,’ stated Tokunbo Azeez, executive director of Baker Hughes Sub-Saharan Africa, highlighting the significance of the project. The new liquid mud plant, slated to open by September, marks Namibia’s first facility of its kind, catering specifically to the needs of the local oil and gas sector.
Liquid mud plants (LMP) play a crucial role in offshore exploration projects, producing, storing, and delivering synthetic oil-based ‘mud’ and brines used during drilling to mitigate the risks of blow-outs and friction. With Namibia emerging as an exploration hotspot following recent offshore discoveries by industry giants such as TotalEnergies, Shell, and Galp Energia, the demand for drilling fluids has surged.
‘Oil companies are importing drilling fluids from Angola and can wait weeks for delivery, inflating costs and risk at their operations,’ Azeez remarked, underscoring the urgency of establishing domestic production facilities. Meanwhile, at Luderitz, earmarked by the government as an energy hub, efforts are underway to expand port infrastructure to accommodate the growing influx of platform support vessels.
Namport, the national ports authority, is seeking debt co-funding of N$1.2bn ($64.5 million) to extend the quay wall at Luderitz port, with the total project cost estimated between N$2bn to N$2.5bn. Andrew Kanime, CEO of Namport, emphasised the importance of the expansion, stating, ‘If we extend it, (the quay wall) will then enable us to maybe double or even triple berth availability.’
Despite ambitious plans for infrastructure expansion, challenges remain. Planned construction at Luderitz port may face delays until early next year as Namport awaits necessary environmental and archaeological authorisations. Nevertheless, the initiatives by Baker Hughes and Namport signal a concerted effort to strengthen Namibia’s position in the global offshore exploration landscape while fostering local industry development.