Mines minister Tom Alweendo says the oil discoveries in the Orange Basin suggest the biggest oil yield ever found in Sub-Saharan Africa.
Speaking at the ongoing Namibia International Energy Conference just outside Windhoek on Wednesday, Alweendo said Namibia is still assessing the commercial viability of these exciting finds.
However, the minister said Namibia is confident that the early projections will prove accurate and that the country needs to prepare for a hydrocarbon bounty that will turn it into a major oil and gas producer.
“It is our belief that there is still so much to be discovered, both in the Orange Basin and in other locations,” he said, adding that Namibia’s offshore Walvis, Luderitz and Namib basins hold tremendous promise, yet are mostly unexplored.
“Although I consider myself a pragmatist, the fact is that we need the resources out of the ground for the oil and gas industry to flourish.
“We need to develop plans to speed up production as soon as the discoveries are determined to be commercially viable,” the minister said.
“We are open for business, and it is our resolve to keep Namibia attractive for investments. Only through investment, especially private sector investment, will we turn our oil and gas opportunities into prosperity,” the minister said.
However, he added that Namibia seeks to attract investors who agree that the investment must result in a mutually rewarding relationship that benefits both the Namibian people and the investor.
Alweendo said the savvy investor will understand that investing in a developing country like Namibia provides a much greater return on investment.
He said not only would the investor earn a return on investment, but the investment, in itself, would have assisted in transforming the economy into a more complex and dynamic one – something that would better serve humanity.
“It is the savvy investor we would like to attract to our shores and not a knight in shining armour who is coming to rescue us from a situation of hopelessness,” he said.
Special message to investors and local entrepreneurs
“I have a specific message for our esteemed investors. We have accepted your collaboration with us, and in return, we expect you to earn your license to operate.
“I ask that you tune out the barrage of noise about how Namibia lacks the necessary expertise, capital, or infrastructure to build a successful oil and gas industry.
“We want you to adopt a tenacious persistence to make things happen and use your unique perspectives to develop Namibia-specific strategies that will succeed,” Alweendo said.
He encouraged the investors who have made discoveries to fast-track field development for all discoveries.
“I also have a special message for Namibian entrepreneurs who wish to participate in our nascent oil and gas sector.
“First and foremost, let us not create any sense of entitlement, an “you owe me” attitude. Entitlement is a belief that I deserve something, without making sure that I deserve it,” he said.
The minister urged the local entrepreneurs to accept personal responsibility for their successes or failures because nobody “owes” them anything.
“So do not expect to receive handouts on a silver platter. No one is going to hand you projects and jobs just because you are a Namibian. You need to be ready, collaborate and compete,” he said.
Alweendo further said oil and gas is a new industry, and therefore, naturally, Namibians currently lack the required expertise, but that should not deter us; it should not dishearten us.
On the contrary, he said, this should embolden Namibians to acquire as much industry knowledge, training, and insight as possible.
“Be proactive and innovative in how you prepare for the upcoming challenges,” he encouraged.
Alweendo said stakeholders in the oil and gas sector – policymakers, oil companies and local entrepreneurs should promote transparency and good governance in all dealings to ensure that Namibia remains a desired destination for investment and becomes a reputation as a solid business partner.
Tribute to Geingob
Alweendo said discussing a burgeoning Namibian energy sector would not be complete without a tribute to President Hage G. Geingob, who died on February 4, 2024.
According to Alweendo, Geingob laid the foundation for a successful Namibian energy industry.
“The substantial offshore oil & gas discoveries and the surge in exploration activity we see today are the results of leadership that focused on good governance,
stability, and business-friendly policies to foster investment.
“His leadership also ensured that our natural gas resources will foremostly be dedicated to domestic needs, which will bolster our energy security and pave the way for our economic growth and industrialisation,” he said.
He also said Geingob must be thanked for Namibia’s rapidly developing green hydrogen sector, which will lead to even more jobs, business opportunities, and access to energy, especially electricity, for all Namibians. “As we mourn his passing, the government will continue with his home-grown energy efforts by maintaining a business-friendly approach to developing the recent discoveries and promoting further exploration,” Alweendo said.
