The mines and energy ministry last week confirmed the discovery of light oil in the Venus well of the joint venture between TotalEnergies (40%), QatarEnergy (30%), Impact Oil and Gas (20%) and the National Petroleum Corporation of Namibia (10%). With a conservative estimate of over three billion barrels of recoverable oil volumes for both the Venus well and Shell’s Graff-1 well, a global consultancy estimates these discoveries could generate as much as N$53 billion in revenues for the Namibian government. 

“The oil discovery, hot on the heels of the Shell discovery, is another proof that Namibia is indeed a great destination to invest in. While waiting for the determination of the commerciality of the resources, the discoveries have permeated us with an unprecedented exhilaration,” said mines and energy minister Tom Alweendo about the latest discovery in a licence area that covers approximately 8 000 square kilometres in deep offshore Namibia

“As stewards of our natural resources, it now demands from us that the resources are utilised to the benefit of the people. Indeed, the discoveries are additional strong bricks in the construction of the Namibian house, where no one feels left out. With these discoveries, we can now clearly reimage a dynamic and diversified Namibian economy,” stressed Alweendo.

In the ministry’s statement, Petroleum Commissioner Maggy Shino expressed her excitement and stated that she is thrilled with the additional discovery and that her office is looking forward to the successful execution of the upcoming appraisal programme.

Meanwhile, a report by global consultancy Wood Mackenzie, noted the two oil discoveries offshore Namibia are likely to bring in as much as R53 billion in revenues for the State. The consultancy explained that if both oil projects proceed at the same time, then at peak production, it could generate more than US$3.5 billion (approximately N$53.5 billion) annually in royalties and taxes for the government.

Wood Mackenzie further estimates that the two projects could attract a cumulative investment of US$29 billion (some N$443 billion) in investment, which is about three times the size of Namibia’s GDP in 2020.