Few other commodities have shaped our world and advanced civilisation as profoundly as oil and gas. Oil alone powers a third of the world’s energy production far more than any other commodity making it the lifeblood of the global economy.
In the last 18 months, 2 light crude oil discoveries were made in Namibia, namely Venus and Graff, in the Orange Basin.
At the recent Namibia Oil and Gas Conference, government reiterated the benefits that Namibia anticipates from these discoveries.
The Venus discovery, located south of the orange basin alone ranks as the second largest deep water oil discovery in the world since 2015 and If proven together with the other recent oil discoveries, has the potential to position Namibia in the top 15 oil producing countries by 2035.
It government’s understanding that, if realised, this will double the country’s Gross Domestic Product by 2040, from 13 billion US dollars to 37 billion US dollars. Preliminary figures from NAMCOR suggest that by 2043 development of Graff and Venus will add nearly 240 billion US dollars to Namibia’s GDP, which can be broken down into 150 billion US dollars direct value added, 33 billion US dollars indirect, and 57 billion US dollars induced.
In addition, Namibia is expected to receive the highest exploration CAPEX in Africa from TotalEnergies to the value of 300 US dollars, which is roughly equivalent to 5.5 billion Namibian dollars appraising Venus, and this CAPEX is likely to increase due to the potential of additional discoveries.
Once proven, the Graff and Venus developments will create direct employment for 4 200 people at peak, and an average of nearly 2 000 people per annum across the twenty year project lifespan in total. These are significant numbers which have the potential to positively change the course of Namibia’s economy and the destiny for current and future generations.
In addition to employment creation, the financial resources to be accrued from oil production will enable government investments in infrastructure, and essential services include health and education. Namibia’s oil and gas sector will undoubtedly bring economic growth, offering new avenues for employment creation, skills development, and investment opportunities. Economic prosperity will be within reach for all Namibians.