NAMIBIA’S upstream oil sector is seeing a surge of global attention, driven by significant oil and gas discoveries in the Orange Basin. Since 2022, TotalEnergies, Shell, and Galp have announced major finds in this offshore region, marking a turning point for the country’s energy sector.
The Orange Basin, located off Namibia’s west coast, first captured international interest when Shell and TotalEnergies revealed their Graff and Jonker field discoveries in 2022. This momentum continued in 2023 when Galp announced the Mopane discovery, sparking further enthusiasm for Namibia’s energy potential.
TotalEnergies’ Venus find is particularly notable, with estimates suggesting at least 1 billion barrels of recoverable oil, potentially making it one of the largest discoveries. If developed, Venus could also become the deepest offshore oil project globally.
Namibia has yet to achieve commercial oil production, but experts predict this may change soon. A recent report suggests that TotalEnergies could begin production by 2028, with the Graff, Jonker, and Mopane fields potentially contributing to an estimated production of nearly 1 million barrels per day by early 2030. TotalEnergies has already signalled its intent to focus on Namibian assets by divesting its South African discoveries.
Exploration in Namibia began modestly, with fewer than 20 offshore wells drilled across the Walvis, Namibe, Lüderitz, and Orange Basins since 1974. However, the last two years have seen an uptick in activity, with eight discoveries from TotalEnergies, Shell, and Galp, representing an estimated 3.5 billion barrels of potentially recoverable oil.
Galp’s recent success in the Orange Basin has also encouraged other energy giants like Chevron, Woodside, and Rhino Resources, who are planning exploration and appraisal campaigns for 2024/25. With interest in the Orange Basin growing, analysts predict that the region will play a significant role in Namibia’s future energy production.
Onshore developments are also progressing, with Reconnaissance Energy drilling the Naingopo exploration well, the first in a previously untapped basin, adding to Namibia’s potential as an energy powerhouse. Meanwhile, BW Energy is making strides to develop the long-neglected Kudu gas field, which could see drilling start as early as next year.
Namibia’s national oil company, NAMCOR, is striving to become a key player in the oil and gas sector. The country holds 230,000 square kilometres of licensed acreage, a vast area compared to established oil regions like Norway. Despite the challenges, including disputes over access to certain lands and questions surrounding deepwater gas use, Namibia’s investor-friendly approach and attractive terms make it an appealing prospect for energy companies.
The Namibian government and NAMCOR are keen to move the country from an exploration frontier to an established production hub. As global interest rises, Namibia’s Orange Basin could soon position the nation as a major player in the global oil industry.
