Namibia’s decision to set up an oil refinery in the country will depend on the quality and quantity of the discovered fossil fuel, The Brief has learnt.
Mines and Energy minister Tom Alweendo told The Brief on Tuesday that the Government is still waiting for conclusive oil-drilling results to map the way forward for the lucrative petroleum sector.
“Yes, we confirm the discovery as announced by the entities involved. The announcement was made only after data confirmed the discovery. The commercial nature, i.e. the quantity and quality, will be determined by the results of the second well that will be drilled during this month. The decision to invest in a refinery will depend on the quantity and quality of the discovery,” he said.
This was after the Mines and Energy ministry had earlier officially confirmed the discovery of light oil within the Orange basin, offshore Namibia, with the commercial value of the discovery still to be ascertained through further drilling due to commence this month.
The National Petroleum Corporation of Namibia (NAMCOR) and its partners, Shell Namibia Upstream B.V and Qatar Energy’s Graff-1 well is said to have proved a working petroleum system for light oil in the Orange Basin, 270 km from the town of Oranjemund, where drilling operations commenced in early December 2021 and were safely completed in early February 2022.
“The discovery has boosted Namibia’s attractiveness to future exploration and we expect higher exploration activities. This gives us a clear shot of reimagining our economy,” Alweendo said.
Namibia has sought to develop oil and gas fields for decades with no success and the potential oil find could prove to be a game changer for the country.
The country’s offshore prospects have in recent years attracted many foreign companies including Exxon Mobil and TotalEnergies following discoveries in Brazil and Guyana which share geological similarities.
TotalEnergies started drilling in December the Venus-1 exploration well in the nearby Block 56 at a depth of 3,000 metres.
Shell holds a 45% stake in the offshore Petroleum Exploration License 39 (PEL 39) with a 45% interest held by Qatar Petroleum and a 10% held by the National Petroleum Corporation of Namibia (NAMCOR).
