While the country has yet to produce oil, energy companies such as Total Energies ( TTEF.PA ) and Shell ( SHEL.L ) have discovered about 2.6 billion barrels. Chevron wants to make its discoveries in the country by 2025.
These discoveries have led to the prediction that the country will be eligible for oil production by 2030. Some of the discovery hotspots in the country include the Orange Basin, Luderitz, Kavango and Walvis basins.
Oil companies in the hunt for oil in Namibia
Oil majors keen to explore Namibia’s potential for oil production include Italy’s Eni, which has agreed an exploitation deal for a 42.5% stake in the Orange Basin offshore licence. Eni is doing this in partnership with BP and the exploration company Rhino Resources.
Portuguese oil company Galp tested the Mopane-1X and Mopane-2X wells and estimated in April that the Mopane field could contain at least 10 billion barrels of oil after a first round of exploration. The hotspot; PEL 83 appears to be one of the largest reserves discovered in the Orange Basin.
On the other hand, Shell is exploring for offshore oil and gas at PEL 39 and has opened a new tab in the Orange Basin with joint venture partners QatarEnergy and Namcor.
PEL 39 comprises 12,000 square kilometers and covers 7 wells that have been drilled. Its Graff well has the potential to store 2.38 billion barrels of oil, with the Jonker-1X well holding an additional 2.5 billion.
Earlier this year, Total Energies agreed to buy an additional 10.5% stake in Block 2913B and 9.39% in Block 2912. The company plans to spend about 30% of its $1 billion exploration and appraisal budget in Namibia in 2024 .
It started operations in Namibia in 1964 and currently has two deep offshore exploration zones. The French oil and gas tycoon has a 40% operating interest, with QatarEnergy, Impact Oil and Gas and Namcor holding 30%, 20% and 10% stakes, respectively.