Namcor estimates N$5.6bn oil proceeds
The National Petroleum Corporation of Namibia (Namcor) has shared ambitious projections for the country's emerging oil sector.
According to its upstream development and production executive Mtundeni Ndafyaalako, Namibia is estimating a substantial recoverable oil reserve of approximately 10.5 billion barrels.
Speaking at the first session of the oil and gas conference in Windhoek, he said: “We expect for a period of five to six years... to be of economic benefit, picking out at 150 barrels of oil per day.
“What this means in terms of revenue for the government, we expect these proceeds to be bigger than Namibia’s current fiscal revenue, which was about N$3.2 billion in the last financial year. We expect it to be N$5.6 billion at its peak of production”.
Ndafyaalako acknowledged the potential challenge of managing such substantial revenue influx, adding that it is important to not let this newfound wealth become a constraint, but rather a driver for diversified economic growth.
Namcor, he said, is committed to channelling resources toward multiple sectors and efforts - such as contributing to the newly established sovereign fund - to prevent an over-concentration of funds in the oil and gas industry.
Local participation
“The local content policy is being developed with the vision that local companies’ participation will be paced so we don’t destroy value in the beginning,” Ndafyaalako said.
“While we push for local participation, we have to be careful not to erode any value so the standards of the petroleum industry should not be lowered, because it would be long-term damage and not be beneficial for us.
“Starting with the midstream section - the logistics-based section, for example - we will have opportunities for smaller companies who could come in and supply services for bigger offshore companies. People can do visas for expats or companies that may be doing catering or some steelwork.
"So, there will be some other industries that are not directly upstream where we encourage the local companies to participate in,” he added.
Attitude matters
Shell Namibia country chair Dennis Zekveld said they have a programme in place with the mining ministry to make sure they have staff who can go offshore and are trying by all means to ensure that these are meaningful interventions to upskill Namibians.
“[But] if there is one thing that is 100% sure, no company will ever sacrifice over quality.
“The other thing is maybe a bit controversial but I will say it: Attitude really matters. If you are willing to roll up your sleeves and [you are] willing to make it and not just waiting for things to happen, that makes a huge difference.
“There have been a number of individuals who have gone offshore and they have asked that they stay not for two weeks but for four weeks, and those individuals have shown exponential growth,” he said.
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According to its upstream development and production executive Mtundeni Ndafyaalako, Namibia is estimating a substantial recoverable oil reserve of approximately 10.5 billion barrels.
Speaking at the first session of the oil and gas conference in Windhoek, he said: “We expect for a period of five to six years... to be of economic benefit, picking out at 150 barrels of oil per day.
“What this means in terms of revenue for the government, we expect these proceeds to be bigger than Namibia’s current fiscal revenue, which was about N$3.2 billion in the last financial year. We expect it to be N$5.6 billion at its peak of production”.
Ndafyaalako acknowledged the potential challenge of managing such substantial revenue influx, adding that it is important to not let this newfound wealth become a constraint, but rather a driver for diversified economic growth.
Namcor, he said, is committed to channelling resources toward multiple sectors and efforts - such as contributing to the newly established sovereign fund - to prevent an over-concentration of funds in the oil and gas industry.
Local participation
“The local content policy is being developed with the vision that local companies’ participation will be paced so we don’t destroy value in the beginning,” Ndafyaalako said.
“While we push for local participation, we have to be careful not to erode any value so the standards of the petroleum industry should not be lowered, because it would be long-term damage and not be beneficial for us.
“Starting with the midstream section - the logistics-based section, for example - we will have opportunities for smaller companies who could come in and supply services for bigger offshore companies. People can do visas for expats or companies that may be doing catering or some steelwork.
"So, there will be some other industries that are not directly upstream where we encourage the local companies to participate in,” he added.
Attitude matters
Shell Namibia country chair Dennis Zekveld said they have a programme in place with the mining ministry to make sure they have staff who can go offshore and are trying by all means to ensure that these are meaningful interventions to upskill Namibians.
“[But] if there is one thing that is 100% sure, no company will ever sacrifice over quality.
“The other thing is maybe a bit controversial but I will say it: Attitude really matters. If you are willing to roll up your sleeves and [you are] willing to make it and not just waiting for things to happen, that makes a huge difference.
“There have been a number of individuals who have gone offshore and they have asked that they stay not for two weeks but for four weeks, and those individuals have shown exponential growth,” he said.
[email protected]
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