Staff Reporter
NAMIBIA’s oil and gas industry made significant strides in 2025, transitioning from early-stage exploration to structured appraisal and development planning, according to the latest Namibia Oil and Gas Bi-Annual Industry Report.
The report highlights sustained offshore activity in the Orange Basin, where continued drilling, evaluation, and resource delineation have reinforced Namibia’s position as one of the world’s most promising deepwater energy frontiers. Increased technical confidence in the scale and quality of discoveries has shifted the industry’s focus toward long-term project viability.
Major international operators, including Shell, TotalEnergies, and Galp, alongside the national oil company NAMCOR, continued to drive exploration and appraisal activities, positioning Namibia as an emerging regional energy hub.
The report highlighted that operators are moving beyond speculative drilling and are now refining development concepts, reducing geological uncertainty, and preparing projects for potential investment decisions in the coming years.
Africa Provider Offshore Services (APOS) emphasised that Namibia’s energy future should prioritise local empowerment alongside international investment. The company called for a level playing field where both foreign and domestic players adhere to national tax and labour laws, warning that non-compliance could undermine local businesses and reduce state revenue.
The report further underscores the importance of collaboration among Namibian companies, encouraging the formation of strategic partnerships to compete for large-scale contracts and ensure that economic benefits remain within the country.
Capacity building also emerged as a key focus, with initiatives such as the Quarks Training Centre aiming to equip Namibians with internationally recognised certifications and reduce reliance on foreign training institutions.
Exploration activities across multiple licences yielded encouraging results. Rhino Resources recorded three hydrocarbon discoveries in the Orange Basin, while Galp and its partners advanced appraisal work on the Mopane complex, which is estimated to hold significant oil reserves. TotalEnergies continued to progress the Venus discovery, one of the largest offshore finds in recent years, with development planning underway.
While some exploration efforts, such as Chevron’s Kapana-1X well, did not yield commercial hydrocarbons, the data collected has contributed to a better understanding of Namibia’s offshore geology and future exploration potential.
Onshore, ReconAfrica continued its exploration campaign in the Kavango Basin, identifying multiple leads and confirming the presence of a working petroleum system, although commercial viability is still under assessment.
The report also highlights growing international interest in Namibia’s energy sector, with several farm-in agreements, joint ventures, and strategic partnerships concluded during the period under review.
Looking ahead, key developments include the anticipated Final Investment Decisions (FID) for major projects such as TotalEnergies’ Venus field and the Kudu gas-to-power project, both expected this year. If approved, first oil and gas production could commence between 2029 and 2030.
Economically, the sector is projected to significantly boost Namibia’s growth, with estimates suggesting oil and gas could contribute up to 5.8% to GDP annually during the production phase, while also creating thousands of jobs across the value chain.
However, the report cautions that realising these benefits will depend on effective governance, strong local content policies, skills development, and the ability to manage technical and financial risks associated with deepwater projects.
The report concludes that Namibia is well-positioned to become a major energy producer, provided it maintains a balanced approach that promotes investment, strengthens local capacity, and ensures sustainable and inclusive economic growth.
Photos: Namibia Oil and Gas Report
