Major hydrocarbon discoveries in Namibia could ensure strong economic growth

Namibia’s significant discoveries in 2022 – Shell’s Graff-1 discovery and TotalEnergies’ Venus discovery – are set to kick-start the country’s oil and gas boom as well as a new era of exploration, production and monetization increase in hydrocarbons in this southern African country. The discovery of Graff, with its 2 billion barrels of oil equivalent, and the discovery of Venus will not only make Namibia a regional energy hub, unleashing the exploitation of the 11 billion barrels of oil and the 2.2 trillion cubic feet of the country’s natural gas reserves, but discoveries will have a profound impact on the socio-economic development of the country.

First, the projects are likely to double projected gross domestic product (GDP) growth of 3.5% year-on-year from 2022 to 2050, leading to increased government revenue and spending, job creation and the development of infrastructure, as well as investments in other sectors. of the local economy. Early estimates show a combined share of more than $40 billion going to the Namibian government from these discoveries, a game-changer for the country’s economy. Second, with Namibia grappling with energy security issues, the Graff and Venus discoveries have the potential to help the country achieve energy independence, affordability, reliability and better access, while enabling the economic diversification.

However, serious planning and reforms from a regulatory, fiscal and economic perspective will need to be implemented to ensure that discoveries accelerate Namibia’s economic goals. In this regard, Namibia needs to develop a detailed roadmap on how to accelerate the deployment of projects while putting in place an investor-friendly regulatory, tax and business environment. The National Petroleum Corporation of Namibia (Namcor) will need to be modernized so that its operations and structure meet international standards while accelerating the evolution of the country’s energy supply chain and prioritizing the development of local content.

Namibia must learn from other African energy projects, including Ghana’s Jubilee fields, Eni’s and ExxonMobil’s Rovuma Deepwater gas projects in Mozambique, Kenya’s onshore and offshore projects, and Tanzania’s gas projects, which have been discovered, delayed and/or developed across Africa over the past 20 years. Lessons can be learned from these projects, particularly with regard to the development of investor-friendly tax regimes.

The African Energy Chamber (AEC), as the voice of the energy sector in Africa, strongly advocates with the Namibian government, through the Ministry of Mines and Hydrocarbons and parastatals in the sector private and public sector such as Namcor, to introduce tax reforms, tax incentives and other regulatory reforms to further strengthen the regime and attract investment that will accelerate the development of oil and gas discoveries.

The AEC is committed to helping Namibia connect with major hydrocarbon producing countries such as Equatorial Guinea, Nigeria, Niger and Angola and emerging energy hubs such as Mauritania, Gabon and the Republic of Congo to learn best practices and how these leaders have developed or are changing. their hydrocarbon markets.

The premier ACS event for the oil and gas sector, Africa Energy Week (AEW), taking place from 18-21 October 2022 in Cape Town, provides an ideal platform for Namibia to connect with other African producing countries and international and oil investors. and gas companies to discuss opportunities within the country’s energy market and reforms the southern African country can implement to accelerate the development of the Graff and Venus discoveries.

Under the theme “Exploring and investing in Africa’s energy future while creating an enabling environment”, AEW 2022 provides a platform for leading market intelligence companies such as IHS Markit, Rystad Energy and Frost & Sullivan to meet with Namibia and other African producers to present and co-develop roadmaps that will enable the full exploitation of Africa’s hydrocarbon resources to eradicate energy poverty across the continent by 2030.

Distributed by APO Group for African Energy Week (AEW).

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About AEW 2022:
AEW 2022 is the AEC’s annual conference, exhibition and networking event. AEW 2022 brings together African energy players with international investors and partners to drive industry growth and development and promote Africa as an energy investment destination. Key organizations such as the African Petroleum Producers Organization, as well as African heavyweights including Equatorial Guinea and Nigeria, have partnered with AEW, furthering the role the event will play in the future. energy of Africa.

This press release was issued by APO. Content is not vetted by the African Business editorial team and none of the content has been verified or validated by our editorial teams, proofreaders or fact checkers. The issuer is solely responsible for the content of this announcement.

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