Namibia is attracting growing international attention to its emerging oil and gas industry following a series of major discoveries in the country’s offshore Orange Basin.
The discoveries have transformed Namibia from a country with no commercial oil production into one of Africa’s most closely watched new energy frontiers. Recent exploration successes by major international energy companies have increased expectations that Namibia could eventually become a significant oil producer.
The Orange Basin, which stretches along the Atlantic coast of Namibia and South Africa, has become the centre of the country’s oil exploration activities. Companies including TotalEnergies, Galp and Equinor are among those involved in exploration and appraisal work in the area.
Equinor recently joined the exploration race after acquiring a 17.4 percent participating interest in Petroleum Exploration Licence 90, or PEL 90, offshore Namibia. The Norwegian energy company is hoping the licence could contain a major oil discovery similar to those already made elsewhere in the Orange Basin.
The growing interest comes after discoveries by TotalEnergies and Galp significantly increased confidence in the basin’s potential. Industry analysts now view Namibia as one of the most promising emerging offshore oil regions globally.
According to Wood Mackenzie estimates cited by Forbes Africa, Namibia could potentially produce more than 500,000 barrels of oil per day before 2033, although this will depend on successful development projects, investment decisions and the results of further exploration.
The potential economic impact for Namibia could be enormous. The country has never commercially produced oil, meaning the development of a major petroleum industry could create new government revenues, jobs, infrastructure and opportunities for local businesses.
However, Namibia’s government is also under pressure to ensure that the potential oil wealth benefits ordinary citizens. At the recent Namibia Oil and Gas Conference, participants called for the country’s petroleum discoveries to be converted into jobs, skills, businesses, investment and long-term national value. More than 1,500 delegates reportedly attended the conference.
Namibia’s Minister of Industries, Mines and Energy, Modestus Amutse, has also urged international investors to take advantage of opportunities in the country’s developing oil and gas industry.
He highlighted Namibia’s political and legal framework, including its rule of law and investor protections, as factors that could encourage further international investment. The minister said several projects in the Orange Basin were progressing towards development, with some moving closer to possible final investment decisions.
One of the major projects is the Venus discovery, where partners are developing plans for a floating production system capable of producing roughly 160,000 barrels per day. A final investment decision is being considered as the project moves through appraisal and development planning.
The Mopane discovery is also attracting significant investment. Galp and TotalEnergies are continuing exploration and appraisal activities, with Galp reportedly considering an additional N$13 billion investment in the project over the coming years.
Despite the optimism, experts caution that transforming discoveries into commercial production will take years and require substantial investment. Offshore oil development is expensive and technically challenging, and companies must still determine the commercial viability of individual discoveries.
There are also concerns about how Namibia will manage the environmental and economic consequences of large-scale oil production. The government will need to balance petroleum development with environmental protection and its existing commitments to renewable energy and sustainable development.
For now, however, the country’s oil prospects are attracting unprecedented international attention. With several major companies competing for opportunities in the Orange Basin, Namibia is increasingly being viewed as a potential new energy hub in Africa.
If the discoveries successfully move into production, the oil industry could significantly transform Namibia’s economy and provide the government with new sources of revenue. The major challenge will be ensuring that the expected wealth is managed transparently and benefits the wider population.
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Namibia is attracting billions of dollars in international investment after major offshore oil discoveries in the Orange Basin. Companies including Equinor, TotalEnergies and Galp are advancing exploration and development projects.
