African countries with little or no current oil and gas output could potentially see billions in energy investments in the coming years.
This includes includes Namibia, South Africa, Uganda, Kenya, Mozambique and Tanzania.
In fact, according to unpublished estimates by two industry consultants, Namibia alone could provide around 500 000 barrels per day in new oil production.
This follows the discovery earlier this year of two promising exploratory wells in recent months.
These preliminary projections were made by data firm IHS Markit and natural resources consultancy Wood Mackenzie.
In February this year, Shell struck an “encouraging” supply of light oil – the kind coveted to produce scarce gasoline and diesel.
Following this discovery, Shell launched a “back-to-back” exploration wells at the site – meaning one well immediately following another – for the first time in the company’s nearly 150-year history.
This is according to two industry sources, who preferred anonymity as exploration continues.
Shell said the quick progress followed the “promising” results of the first well but cautioned in a statement that due to its climate commitments, it would only advance projects “with a credible path to early development … (that are) resilient and competitive in low- as well as high-price scenarios”.
Furthermore, TotalEnergies completed an exploration well at its nearby Venus prospect in March, which it called “significant”, with a more advanced appraisal well due in the third quarter.
The company noted it will “still have to determine if the volumes are commercially recoverable… (but) investments remain necessary to satisfy demand”.
A senior Shell official, speaking on condition of anonymity, estimated it will take around US$11 billion (over N$174 billion at current exchange rates) to develop the two companies’ blocs.
Maggy Shino, petroleum commissioner in the energy ministry, told Reuters “there is a possibility for Namibia to be the last African giant”.
“In the wake of the success in drilling of Namibia comes the Ukraine and Russian conflict… what we are seeing (is) that currently, more companies are looking to invest in Namibia in the search for hydrocarbons,” said Shino, adding Namibia hopes to begin production from the Shell project by 2026.