I discussed the prospects of Namibia's new oil and gas boom on TRT World the other day. I am very optimistic about the country's socio-economic prospects.
- Namibia is the “new Guyana” following a trio of significant play-opening oil discoveries in the Orange basin with the potential for up to 11 billion barrels of crude oil.
- Buoyed by the country's political stability, high-impact drilling is expected to continue in Namibia.
- Several majors such as Shell, TotalEnergies, Galp, Chevron, Azule Energy and ExxonMobil have acquired or are in the process of acquiring acreage.
- Subject to FIDs, Namibia could produce between 500,000 to 1 million barrels a day by the mid-2030s. This would make it among the top five oil producers on the continent
- Namibia is also looking to become a green industrial hub by producing green hydrogen for local, regional, and external markets in Europe. According to expert analysis, Namibia can theoretically produce some of the most cost-competitive green hydrogen and green ammonia globally using its vast solar and wind resources. In May 2023, Hyphen Hydrogen Energy agreed a deal with the Government of Namibia for a $10 billion green hydrogen project.
- Namibia's US$13 billion GDP could double or even triple by 2040, but the country would have to do more to translate this newfound resource wealth into equitable development and structural transformation— governance/institutional reforms to address the large unemployment and inequality (NB: there are lots of good and bad lessons abound on the continent from Ghana to Nigeria).
