Namibia stands on the cusp of an economic transformation with its recent petroleum discoveries in the Orange Basin, estimated at approximately eleven billion barrels of light crude oil and 2.2 trillion cubic feet of natural gas reserves.
As the nation eyes the potential prosperity this resource wealth could bring, experts like Dr. Riverson Oppong, a seasoned petroleum economist, are urging Namibia to take decisive steps to ensure these resources are harnessed effectively for long-term economic development.
Speaking at the 2nd Namibian Oil and Gas Conference in Windhoek, held under the theme “The Next Step Towards a Prosperous Oil and Gas Industry to Power Namibia’s Sustainable Future,” Dr. Oppong emphasized the importance of a clear-cut gas master plan.
Dr. Oppong highlighted the need for Namibia to learn from the experiences of other oil-rich nations, particularly Ghana, in managing its petroleum resources.
Dr. Oppong’s advice comes at a critical time when Namibia is poised to become a significant player in the global energy market. He noted that gas has emerged as a key transition fuel in the global shift towards more sustainable energy sources.
However, Dr. Oppong cautioned against repeating the mistakes of countries like Nigeria, which have flared significant amounts of gas for decades, causing environmental harm and wasting valuable resources.
“Nigeria flared gas for over sixty years, to the detriment of the environment,” Dr. Oppong remarked. “Namibia must avoid this by leveraging its gas resources for commercial use.”
Dr. Oppong commended Ghana’s President Nana Akufo-Addo for making a strategic decision to harness excess gas for commercial purposes, rather than allowing it to be flared.
“The Ghanaian president thought it wise to trap all the excess gas, whether associated or non-associated, into the pool for electricity generation and to create jobs for the country,” Dr. Oppong stated. This move, he argued, has positioned Ghana as a model for effective gas utilisation, from which Namibia can draw valuable lessons.
Namibia’s Vision: An Energy Hub for Africa
Namibia has already declared its intention to position itself as an energy hub in Africa, leveraging its vast petroleum potential and abundant land space. Dr. Oppong lauded this vision, noting that Namibia has the resources to challenge traditional oil and gas giants in Africa, such as Nigeria, Angola, and Libya.
“They have the land, they have the petroleum resources, they are number one in terms of hydrogen gas, and they can easily do solar energy given their vast land sizes,” Dr. Oppong explained. However, he stressed that achieving this vision requires significant investment in sustainable energy projects.
Moreover, Dr. Oppong urged Namibia to develop appropriate fiscal regimes to ensure that revenue from oil and gas sales translates into tangible economic benefits. This includes signing relevant petroleum agreements with international oil companies (IOCs) that protect Namibia’s interests and avoid the pitfalls experienced by other African nations.
“Other African countries have not done so well in managing their petroleum revenues in the past. I hope Namibia will learn from our mistakes and do the right things,” Dr. Oppong advised.
Learning from Ghana’s Local Content Success
In a bid to ensure that its oil and gas industry benefits the broader Namibian economy, a delegation from Namibia’s Ministry of Mines and Energy, along with representatives from its national oil company NAMCOR, is expected to visit Ghana in September.
The mission Is to learn from Ghana’s experience in implementing local content legislation, which has been crucial in ensuring that Ghanaians benefit from the country’s oil and gas industry.
Dr. Oppong highlighted that Ghana’s Ministry of Energy, the Petroleum Commission, and the Ghana National Gas Company would play a pivotal role in sharing their expertise with the Namibian delegation. “We will also help them avoid some of the gas negotiation mistakes we made and help them come up with an appropriate gas master plan to guide the industry,” Dr. Oppong said.
Namibia’s vision is to build a technically and financially capable national oil company that can effectively manage the country’s petroleum resources on behalf of its citizens. NAMCOR is expected to play a central role in safeguarding state interests in petroleum licenses, ensuring that oil prosperity benefits all Namibians.
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