Tom Alweendo, Namibia’s Minister of Mines and Energy, will speak at the 2024 edition of the African Energy Week (AEW): Invest in African Energy conference – taking place November 4-8 in Cape Town. Alweendo’s return to the event underscores his commitment to increasing investment across the Namibian energy value chain and is expected to open up new avenues for engagement with global energy companies.
Namibia aims to produce first oil by 2030 and is prioritizing collaboration with project partners to achieve this goal, Alweendo said in December 2023. Since initial discoveries were made by supermajors Shell and TotalEnergies in 2022, the country has witnessed a string of industry developments, all of which highlight the potential for large-scale investments. In two short years, the country has become one of the hottest frontier oil plays and AEW 2024 will shed light on ongoing projects, national priorities and investment opportunities.
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TotalEnergies discovered the company’s second oil and gas find at the Mangetti-1X well in January 2024, building on its Venus-1 find in 2022 where over two billion barrels are estimated to be in place. Appraisal work has already kicked off for Mangetti-1X while the company has dedicated 30% of its exploration and appraisal budget to the country. Two discoveries were also made by Portuguese oil and gas company Galp at the Mopane-1X well in PEL 83. Galp’s contracted rig will proceed to drill the Mopane-2X well. Meanwhile, Shell continues to drill at PEL 39, where discoveries were made at the Graff-1; Jonker-1X – estimated to hold 300 million barrels -; the Lesedi-1X well; and the La Rona well. These finds draw attention to the size and scope of untapped oil and gas in Namibia, making a strong case for other E&P companies interested in the basin.
Onshore, independent oil and gas company ReconAfrica plans to start a drilling program in the Kavango Basin in 2024. The company secured approval for the second renewal exploration period on PEL 73 – running from 2024-2026 – and plans to drill a minimum of one exploration or stratigraphic well in the license. Meanwhile, oil and gas company 88 Energy signed a farm-in deal with private exploration firm Monitor Exploration in November 2023 for a 45% non-operated working interest in PEL 93. With prospective resources of 22 trillion cubic feet of gas in PEL 73 alone, Namibia’s onshore market offers high returns for E&P companies.
In addition to exploratory success, Namibia’s efforts to start producing gas from the Kudu Conventional Gas Development in the Orange Basin by 2026 are beginning to show progress with an FID expected this year. A joint development plan for the asset was signed in November 2023 between TotalEnergies, Shell and the government, with the project currently in the Front-End Engineering and Design phase. Gas from the project will be transported to an 885 MW combined cycle gas turbine and will be used for domestic power generation, offering a strategic opportunity for the southern African region to enhance energy security.
Notwithstanding oil and gas achievements, Namibia’s continues to make progress to establish itself as a global green hydrogen hub. Three green hydrogen pilot projects – the Hyrail Dual-Fuel Locomotive, Daures Green Hydrogen Project and Cleanergy Green Hydrogen Service Station – will begin operations in 2024. Additionally, Namibia’s dedicated green hydrogen blended finance vehicle – SDG Namibia One Fund – acquired a 24% stake in the country’s largest green hydrogen development – the $10 billion Tsau-Khaeb Green Hydrogen project – earlier this year. With a capacity of 7 GW of renewable energy and 3 GW of electrolyzer, the project will produce two million tons of green hydrogen per year.
“Namibia continues to make strides towards unlocking the full potential of its energy sector. Attractive regulation, long-term development plans and an integration approach to developing resources further consolidates the country’s position as a regional hub. As interest continues to turn towards the country’s oil, gas and green energy opportunities, AEW 2024: Invest in African Energy will connect capital to projects and partners with authorities,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber.