Namibia’s oil rush: Following in Guyana’s economic footsteps

Namibia's burgeoning oil potential mirrors Guyana's transformative boom, drawing comparisons from industry leaders. With significant discoveries off its coast, including TotalEnergies' Venus find, Namibia primes itself for economic growth akin to Guyana's ascent. However, challenges loom, notably in coordinating multiple projects among various operators. As Namibia navigates infrastructure hurdles, insights gleaned from Guyana's experience guide its path towards sustainable oil development and inclusive growth. Discover more in this insightful Bloomberg article..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..By Francois de Beaupuy, Paul Burkhardt and Kaula Nhongo.Namibia's oil potential could one day match Guyana, where big discoveries have sparked an economic transformation and set the world's biggest companies jostling for position. .Read more: 🔒 FT: Namibian oil boom – A potential game-changer in the global oil market ignites investor interest.There's a "big chunk of oil" in waters off Namibia, said Patrick Pouyanne, chief executive officer of TotalEnergies SE, which alongside several other companies has made significant discoveries in the African country. ."Shell has some oil, we have some oil, Galp has some oil," Pouyanne said in an interview at the French company's headquarters near Paris on Wednesday. A scenario "like you have today in Guyana is very possible.".In the past two years, TotalEnergies, Shell Plc and Galp Energia SGPS SA have made finds off the southwest coast of Africa that turned sparsely populated Namibia into a hotspot for exploration. While no field has yet been given the green light for development, hopes are high in the country that an economic boom similar to that seen in Guyana could be on the cards. .The Latin American nation became the world's fastest growing economy after Exxon Mobil Corp. tapped large offshore discoveries there. Earlier this month, the US company formally approved its sixth oil development in Guyana, which will one day make it a bigger crude producer than its neighbor and founding OPEC member Venezuela..Pouyanne cautioned that it might be more complex to optimize several projects led by various operators in Namibia, rather than the single company Exxon that's leading development in Guyana. .By the end of next year, TotalEnergies aims to approve its first oil development in Namibia at the Venus discovery, which could involve a floating production, storage and offtake vessel with a capacity of as much as 180,000 barrels a day, Pouyanne said. The company will continue to explore its blocks before considering whether it might need more production vessels, and can take heart that Shell seems to have made another find in an adjacent area, he said..Officials from Namibia's Ministry of Mines and Energy and state oil company Namcor visited Guyana late last year seeking advice about oil developments, including the participation of local business, raising public awareness and expanding port facilities..There were a lot of problems experienced with infrastructure in Guyana "and the advice Namibia got was to take our time and do proper infrastructure assessment," Maggy Shino, Namibia's petroleum commissioner, said in an emailed response to questions..Read also:.🔒 Boardroom Talk – Good News Monday Missive on a Joburg recall election and Namibian oil boom🔒 Premium from the FT – Could Namibia be the next oil frontier, world's newest petrostate?Newest African oil jackpot: Namibia must overcome a long-standing corruption curse.© 2024 Bloomberg L.P.

Namibia’s oil rush: Following in Guyana’s economic footsteps

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