Namcor acting managing director Shiwana Ndeunyema said the company is establishing itself as a fully integrated energy company.
Ndeunyema told the Invest in African Energy Forum in Paris on 1 June 2023 that they are actively engaging in renewable energy, green hydrogen and research and development programs.
“We are working on establishing three strategic partnerships on green hydrogen. We are also looking at creating more synergies between oil and gas and green hydrogen,” Ndeunyema said.
He added that in 2022 and 2023, Namibia witnessed three large-scale oil and gas finds by energy majors Shell, TotalEnergies and Qatar Energy.
Namcor, Ndeunyema said, is now looking at harnessing the sector’s full potential.
The oil and gas discoveries, he said, would double Namibia’s GDP in the next ten years and will place Namibia as one of the top oil producers by 2035.
Namcor executive for upstream exploration Victoria Sibeya, who is also attending, said Namcor is talking about a fast-tracked program if the appraisal program succeeds.
“We are targeting first oil production by 2029,” Sibeya said.
Sibeya also said the Kudu gas project will be operational in 2026, and Namcor plans to produce 400MW of power from gas for domestic use and export.
According to Sibeya, the Kudu gas project pre-Front End Engineering and Design (FEED) study is complete.
Ambitious Upstream Plan
The suspended Namcor managing director Immanuel Mulunga said in the 2021/22 annual report that the company had embarked on an ambitious pursuit to acquire international oil- and gas-producing assets to generate an alternative revenue stream.
“The revenue streams for the Upstream Exploration Department for the 2021/2022 financial year were derived from licensing upstream technical data and cash considerations from farming-down of participation interests in Petroleum Exploration Licences (PELs),” Mulunga said in the report.
Mulunga said the acquisition of international oil- and gas-producing assets not only enhances the security of the supply of petroleum products for Namibia but also provides an opportunity to attain sustainable financial growth and revenue diversification.
The report said Namcor set aside US$10m as part of its share of the initial equity contributions expected from consortium partners.
The government amended the Petroleum Exploration and Production Act (Act No. 2 of 1991) to allow Namcor to explore oil and gas in Namibia and not just be a minority participant.
Namcor’s Upstream Exploration Department generates revenue and is involved in petroleum exploration.
In 2021/2022, the department generated more than N$30m from licencing upstream technical data. This was more than twice the target of N$15m.
Namcor also earned US$4m from selling its 39% stake in the Kudu Gas project to BW Kudu. Part of the deal entails that Namcor receives a 5% free carry, a 5% back-in right exercisable by the second anniversary of the first gas date, a commitment to training staff through dedicated secondments, and a write-off of about N$50m in one-time costs that the company owed to the joint venture (JV).
The department aims to acquire one Petroleum Exploration Licence (PEL) in the next five years and farm-out one block to generate more than N$28m.
In addition, the department also wants to generate N$15m worth of data sales revenue and partner with leading players in broadband seismic technology to improve the accuracy of subsurface analysis and skills transfer.
Namcor operates five offshore PELs. PEL 67 and 72 on blocks 2714A&B are in the Orange Basin, measuring 10 945 km2. Namcor has a 67% stake, while Quiver Oil has 33%.
There is also PEL 79 on blocks 2815 and 2915 in the Orange Basin, measuring 13 829 km2 with a water depth of 0-210m. Namcor’s interest is 67%, and Giraffe Energy Investments owns 33%.
The other is the 11 444 km2 PEL 82 on blocks 2112B and 2212A in the Walvis Basin, whose depth is 300-2000m. Namcor is in a 50-50 deal with Custos Energy.
The last PEL is 102 on block 2614B in the Luderitz basin, measuring 15 510,8 km2, with a 0-210m depth. Again, Namcor is in a 50-50 deal with Nasman Investments.
Namcor has one production licence – the Kudu Gas – in which BW Kudu has a 56% stake and Namcor 44%.
Pretty Good Estimates
The Namcor annual report said its study done by Wood Mackenzie on the impact of the recent oil discoveries concluded that Namibia could earn up to US$5,6b in taxes and royalties annually.
Namcor is part of the companies that found oil in the Orange Basin in 2021, 2022 and 2023.
TotalEnergies, Qatar Energy and Namcor own PEL 56 on Block 2913B, where they spudded the Venus-1X on 30 November 2021.
Namcor is also a partner on PEL 39 on Block 2913A with Shell Namibia Upstream BV and Qatar Energy. The Graff-1 well spudded on 9 December 2021.
On 4 February 2022, the partners said the Graff-1 had produced light oil.
On 24 February 2022, the companies reported finding “a major light oil and associated gas” on the Venus-1X.
On 6 March 2023, Namcor, Shell and Qatar announced a third light oil discovery – the Jonker-1X – on Block 2913A 1nd 2014B (PEL 39).
Namcor said initial estimates show that the Graff-1 and Venus-1X could double Namibia’s GDP to nearly US$37b by 20240.
The Wood Mackenzie study titled Socioeconomic Impact of Recent Namibian Discoveries, according to Namcor, said Graff-1 and Venus-1X could produce 400,000 barrels per day (bbl/day) and potentially generate over 3,600 jobs at peak.
The investors stand to make about US$8.1b and earn the government US$44.9b. In addition, the study estimates a total investment of over US$12b.
These estimates could be higher after light oil discovery at the Jonker-1X prospect.
Downstream activities
According to Mulunga, Namcor seeks to simplify and strengthen its core business, including expanding its retail network.
He said a market study supports Namcor’s active participation in the downstream retail business on a multi-faceted retail network roll-out project, which could deliver good revenue and increased profit margins.
According to Mulunga, Namcor plans to construct 33 retail sites across Namibia by 2024. Eleven were completed in 2022.
For 2022, Namcor planned to construct the Dynamic Service Station in Mariental, Pitstop in Swakopmund and Karas Oasis in Karasburg.
Other projects in Katutura, Kehemu in Rundu and Opuwo are nearing completion, while construction in Kamanjab, Gobabis and Paradise in Rundu is at various stages.
On average, Namcor delivers 9,5 million litres (10.8%) of fuel monthly out of the 88 million litres Namibia consumes monthly.
During 2021/22, Namcor’s commercial fuel sales grew by 26%, with automotive diesel oil and very low sulphur fuel oil recording 29% and 33% sales growth, respectively.
Namcor made N$2,8b in fuel sales in 2021/22 against a target of N$1,5b, driven by a sharp increase in exports and bunkering sales. Retail sales volumes were 18.8 million litres against a target of 14.6 million litres.
“Our priorities for commercial business are to grow market share to 11.3% by the end of the 2022/2023 financial year and to establish a strong export presence in the SADC region,” Namcor said.
Namcor deals
PEL 94 Block 2011A Walvis Basin
Australia’s Global Petroleum 78%
Namcor 17 (7% acquired in exchange for licencing 3D data)
Aloe Investments 5%
The Cooper Block (PEL 97) Block 2012A Walvis Basin
Eco Atlantic Oil & Gas (Operator) 85%
Namcor 10%
Tangi Trading Enterprise cc 5%
The Sharon Block (PEL 98) Block 2213
Eco Atlantic Oil & Gas (Operator) 85%
NAMCOR 10%
Titan Oil & Gas Ltd 5%
The Guy Block (PEL 99) Blocks 2111B & 2211A
Eco Atlantic Oil & Gas 85%
Namcor 10%
Lotus Explorations (Pty) Ltd 5%
The Tamar Block (PEL 100) Blocks 2211B & 2311A
Eco Atlantic Oil & Gas (Operator) 85%
NAMCOR 10%
Moonshade Investment Ltd 5%
PEL 39 Block 2913A & 2914B Orange Basin,
Shell (45%)
Qatar Petroleum (45%)
Namcor (10%)
PELs 43) Block 2111A & 2011B Orange Basin
Oranto Petroleum 87%
Namcor 10%
Ozondje Petroleum 3%
PEL 44 Block 2212B Walvis Basin
Maurel & Prom Group (Maurel & Prom Namibia) 85%
Namcor 8%
Livingstone Mining Resource Development 4%
Frontier Mineral Resources 3%
PEL 47 Blocks 2512A, 2513A, 2513B, and 2612A Luderitz Basin
Serica Energy plc 85%
Namcor 10%
Indigenous Energy 5%
PEL 56 Block 2913B Orange Basin
TotalEnergies 40%
QatarEnergy 30%
Impact Oil and Gas 20%
Namcor 10%
PEL 58 Block 2113A Walvis Basin
Nabirm 90%
Namcor 10%
PEL 70 Block 1818 Kavango Basin
ACREP-Exploracao Petrolifera 70%
Namcor 7%
Premier Oil&Gas 20%
Gravity MI 3%
PEL 71 Block 2714A Orange Basin
Enigma 85%
Namcor 10%
Quiver Oil & Gas 5%
PEL 73 Blocks 1819 and 1830 Kavango Basin
ReconAfrica 95%
Namcor 5%
PEL 76, 77, 84, 85 Block 2914A Orange Basin
Rhino Resources 55%
Namcor 30%
Korres 15%
PEL 82 Blocks 2112B/2212A Walvis Bay
Galp 40%
ExxonMobil 40%
Namcor 10%
Custos 10%
PEL 83 Block 2813A Walvis Basin
Galp 80%
Namcor 10%
Custos Energy 10%
PEL 87 PEL 87 Orange Basin
Pancontinental 75%
Custos Investments 15%
Namcor 10%
PEL 90 Block 2813B Orange Basin
Chevron Namibia 80%
Inter Oil 10%
Namcor 10%
PEL 91 Block 2912 Orange Basin
TotalEnergies 37.78%
Impact 18.89%
QatarEnergy 28.33%
Namcor 15%
PEL 93 Blocks 1717 and 1817 Owambo Basin
Monitor Exploration Limited 75%
Local partner 15%
Namcor 10%
PEL 86 Blocks 1811A
ExxonMobil E&P 85%
Namcor 15%
PEL 89 Block 1711
ExxonMobil E&P 85%
Namcor 15%
PEL 95 Block 1710
ExxonMobil 90%
Namcor 10%
PEL 95 Block 1810
ExxonMobil 90%
Namcor 10%
PEL 96 Blocks 1910A, 1911 and 1912B Walvis Basin
Tower Resources (Namibia) 80%
Namcor 10%
ZM Fourteen Investment cc 10%
