The Economic Association of Namibia (EAN) is gearing up to host the second edition of the Namibia Oil and Gas Conference. In anticipation of this major event, the association’s president, Jason Kasuto, shares insights into Namibia’s burgeoning oil and gas sector, discussing current developments, opportunities, and what attendees can expect at the conference, which will be held from the 20th to the 22nd of August 2024 at the Mercure Hotel in Windhoek.
What are the key investment opportunities in Namibia’s oil and gas sector for local and international investors?
JK) The investment opportunities are wide ranging, given the number of direct and indirect industries that will be associated with the O&G industry. Over the next 6 years of exploration and thereafter, production for +\~25years. This presents opportunities to invest in much needed infrastructure in-country to support the industry, that may require deeper pockets internationally. As for local investors, supporting the capacity building and participation of SMEs in the value chain is an investment that our local financiers should be positioning themselves for immediately. We definitely need financiers with different risk appetites locally this will require traditional banks, Development Bank, private equity etc.
How can Namibia attract more foreign direct investment (FDI) while ensuring that local businesses also benefit from the sector’s growth?
JK) Expediting the finalization of the local content policy and its associated regulations, if any, provides a clear playing field required for all parties both local and foreign to meaningfully understand roles and expectations, and thereby stimulate activity. Maintaining a stable governance environment, which the country has achieved over the years is crucial and complements our level of attractiveness for FDI.
How can local businesses be better integrated into the oil and gas supply chain?
JK) I have been advocating for the establishment of a local supplier database, by the Ministry of Mines and Energy, taking into account the with required supplier standards of international oil companies. This creates a transparent and seamless approach to market access for our local businesses.
What are the most pressing infrastructure needs for Namibia’s oil and gas sector to thrive and how can public-private partnerships be leveraged to address these infrastructure gaps?
JK) Amongst others, Shore base support facilities are much needed to support the industry’s requirements both in Walvis Bay and Lüderitz.
What economic models best support the sustainable development of Namibia’s oil and gas resources?
JK) Any economic model that best supports the management and exploitation of these natural resources, is only best informed and designed by a forward-looking strategy, that factors in: intensive local capacity building; infrastructure development; and local content policy directives that strike the right balance, with what is possible, in the short-medium to long term.
Can you share examples of best practices from other countries that Namibia can adopt to enhance its oil and gas sector?
JK) We can learn a lot from other countries both in terms of what has worked and what has not worked. The West African region has a plethora of lessons to guide. Countries such as Oman also provide a good case for In-Country-Value creation that appears to have worked well for their nation.
How can Namibia ensure it has a skilled workforce to meet the demands of the growing oil and gas sector and what role should educational institutions play in preparing the next generation of professionals for the industry?
JK) Our education institutions should strategically start pursuing relationships with training & education institutions in jurisdictions that have successfully build in-country skills and capacity. This provides a pivotal avenue for cooperation and establishing Centres of excellence in Namibia.
What is your vision for the future of Namibia’s oil and gas industry over the next decade?
JK) My vision is (1) the oil discoveries are commercially actualized, according to the figures predicated (2) Namibia takes Centre stage as an energy hub, that fosters an enabling environment for the industry to participate and thrive (3) the economic outputs are inclusive (4) Namibia develops an In-Country-Value strategy with set targets that it actually achieves (5) we achieve a level of Industrialisation that creates a support base for other industries beyond oil & gas.
What are the biggest challenges and opportunities that you foresee for Namibia in this sector?
JK) Policy ,Strategy; and the much needed infrastructure requirements
What role do international collaborations play in the development of Namibia’s oil and gas industry?
JK) As much as we have been exploring for years, and have few knowledgeable men and woman in the sector, it’s only through mutually beneficial collaborations with international partners, that we can avoid pitfalls of other nations and boost inclusive growth.
Why should you attend the Namibia Oil and Gas Conference 2024?
JK) EAN has fueled the knowledge and innovation to lay solid foundations of a strategic roadmap for guiding both the public and private sectors on how the country can best benefit from the investments in the sector. With an emphasis placed on interaction between all participants of the event, the Namibia Oil and Gas Conference will ensure you have the best possible access to everyone who matters to your business. It will bring together key role players in Namibia and the international oil and gas value chain together under one roof, representing a significant opportunity for organisations and individuals to have effective meetings throughout the event
As the Chairperson for the EAN – one of the local hosts for the conference – can you tell us more about EAN’s role?
JK) The EAN is a Namibian Think Tank that serves as a catalyst for socioeconomic development by providing public policy analysis and advisory services and by bridging the gap between the private and public sector players through the creation of platforms for improved dialogue. This conference aligns with exactly that. Following on from the 1st NOGC held in 2023, a resounding success that saw international and local delegates, embraced the growing demand to host the 2nd edition unpacking the potential of the emerging oil and gas industry for economic transformation. The Economic Association of Namibia, will host once more key role-players in Namibia’s oil and gas ecosystem, civil society and the general public for NOGC 2024 to exchange views on the potential, opportunities, and risks of establishing an oil and gas industry in the country.
How will the spate of recent oil discoveries in Namibia impact the local economy?
JK) During exploration and if we are to really ensure strong local content participation the skills transfer and local SME sector can stand to gain significantly. During this phase there may not be a significant increase in the GDP but more on inclusive growth. Should infrastructure that’s required on shore be executed these figures could be significant.
