Namibia’s push to become an oil producer by 2030 is on pause - here’s why

Namibia's port administration has postponed plans to upgrade Lüderitz's southern harbor, a vital infrastructure project required to support the country's emerging oil and gas industry, claiming a lack of clarity about the scope of work.

• The Namibian Ports Authority (Namport) has postponed plans to upgrade Lüderitz harbor due to uncertainties in the project scope.
• Namport seeks proposals for establishing an oil and gas supply facility but faced delays after stakeholder concerns.
• Namibia's oil and gas reserves, estimated at 2.6 billion barrels, position the country as a significant emerging energy frontier in Africa.
• Exploration companies, including TotalEnergies and Shell, continue to focus on the region's resource potential, with plans for further drilling activities.

The Namibian Ports Authority (Namport) has requested proposals for a concession to establish an oil and gas supply facility in Lüderitz.

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However, the procedure was delayed last week because the advertising caused concern among parties.

“This setback will have an impact on set timelines for the project, but there is nothing we can do,” the Namibian Ports Authority Chief Executive Officer, Andrew Kanime, stated.

Namibia: A nation on the brink of oil production

Namibia has emerged as one of Africa's most carefully watched energy frontiers, after huge discoveries by TotalEnergies SE and Shell Plc in 2022.

The country is expected to have up to 2.6 billion barrels of reserves, with exploration hotspots in the Orange, Luderitz, Kavango, and Walvis basins.

Just last week, it was reported that TotalEnergies was planning a new offshore drilling exploration in South Africa's Deep Western Orange Basin, which extends into the Namibian seas, where significant finds have been recorded.

According to SLR Consulting, Total's South African affiliate intends to drill up to seven wells around 211 kilometers (131 miles) off the coast of Saldanha Bay.

While Namibia has yet to produce a single barrel of oil, forecasts indicate that the nation might start commercial production by 2030.

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Infrastructure, especially upgraded ports, will be critical to achieving that goal.

Lüderitz, Namibia's southern port, is seen as critical since it is less than half the distance to offshore finds as Walvis Bay, Namibia's principal port, as per Bloomberg.

“The project will continue, I just can’t confirm when the bid will be advertised again,” Kanime stated.

Due to the presence of a historic German colonial army concentration camp, the Lüderitz repairs require both environmental licenses and heritage impact evaluations, according to Namport's CEO.

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