The global oil major has announced a significant oil discovery in the offshore Graff-1 well in Namibia, reaffirming the hydrocarbon potential of Namibia.
“H.E. Tom Alweendo, the Minister of Mines and Energy, Petroleum Commission, Namcor and other Namibian authorities have been very pragmatic in their approach with energy companies, and it is commendable. They have learned a lot from the mistakes of others, and we are confident they will get it right, especially on fast tracking field development decisions, pragmatic local content and ensuring that the resources improve the living conditions of their citizens. They’re up against a lot, but they have a lot of partners who are going to support them. I believe Namibia and many African countries will see more drilling of high-impact oil and gas prospects which is very good as these resources are needed to make energy poverty history,” concludes Ayuk.
Meanwhile, as Namibia pursues exploration and production of the discovery, it is critical that the country develops an oil and gas bill to ensure effective regulation, certainty, and overall beneficiation of the find. The establishment and implementation of market-driven policies through an oil and gas bill will have a number of benefits, both for explorers and producers and the country itself. Firstly, the bill will improve certainty and transparency across the industry, providing IOCs and domestic companies clarity with regards to industry procedures and policies. This will ensure productivity while reducing time taken to get projects off the ground. Secondly, the bill will enable the regulation of the industry, providing clarity on tax, risk, ownership and safety, as well as environmental and local content policies.
This way, the government can ensure the country fully maximizes the benefits brought about by the find. In developing a progressive oil and gas Bill, taking into consideration the environmental impacts associated with these types of developments, Namibia will need to put in place strict environmental policies to ensure impacts are minimal. With global pressures mounting to transition to clean sources of fuel, many international stakeholders are calling for the end of fossil fuel utilization. Therefore, it is critical, now more than ever, to ensure oil and gas exploration and production is achieved with minimal emissions. Namibia has already made a strong play for investment at continental energy conferences such as African Energy Week (AEW) 2021. Now, backed by this exciting discovery, the country is well positioned to drive new investment and development across its energy landscape.