A prerequisite for international oil and gas companies hoping to obtain licenses to exploit Namibia’s natural resources is cooperation with Namibian companies and the government, said Petroleum Commissioner Maggie Shino, the Namibian Sun reported on February 22.
Engaging local partners and using local workers will not just be a choice but a responsibility, the Petroleum Commissioner told the International Association of Drilling Contractors conference in Windhoek this week.
The Government is implementing this strategy to increase local participation in the value chain, create jobs and provide training and skills development to Namibian citizens, while ensuring Namibian ownership at all levels of the oil sector, he said.
“Local content is mandatory and is not a ‘nice to have’ option in the Namibian oil industry. As an engine of economic growth, we seek inclusive participation that goes beyond mere employment. “We look for local content that will be shaped by industrialization, capacity development and the transfer of skills and technology.”Shino said.
Under this strategy, a company will be considered local if it is incorporated under the laws of Namibia, has at least 51 per cent of its capital owned by nationals and has its principal place of business in Namibia. When assessing the level of compliance with local participation requirements, special attention will be paid to mitigating and protecting against market capture (fronting) practices, he explained.
This means that oil majors Shell, TotalEnergies and Galp, which found oil in the Graff-1, Venus 1-X and Energia Mopane 1-X wells respectively, will have to negotiate with the government over local content.
Namibia’s prospects of becoming a major oil and gas supplier appear likely, Shino said.
“According to data analysis, the prospects and untapped potential of the Namibian oil basin are enormous, and it is bigger and better than we expected so far. There are currently four rigs operating offshore Namibia in our prolific Orange Basin, with exploration and appraisal drilling underway, managed by Shell, Total and Galp.”– she said.
The potential for new oil finds is constantly growing and data shows that other major oil discoveries are expected in the Lüderitz, Walvis Bay and Namibe basins, he noted. The government also expects TotalEnergies, Shell and Galp to take further action in light of its findings, the oil commissioner added.
“We expect final investment decisions to be made in the coming months on discoveries made by TotalEnergies, Shell and Galp, as well as the existing Kudu gas field operated by BW Energy.”.
Source: Rossa Primavera
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