Namibia's political stability to benefit oil industry - study
A recent study has suggested that Namibia's booming oil industry is expected to be a blessing rather than a curse for the country, given the country’s political stability, institutions and systems.
This finding is in stark contrast to the typical narrative surrounding natural resource discoveries in developing countries, particularly in Africa, where they often lead to political instability and economic challenges.
This is according to a study titled ‘The Political Dynamics of Oil Discovery and the Resource Curse in Namibia’ by Josia Moyo and Nicholas Idris Erameh.
“However, the Namibian government ought to adopt preparatory measures that require analysis of costs versus benefits, analysis of control mechanisms such as state institutions, as well as analysis of opportunities that are to be derived from oil extraction," the authors noted in an abstract of the study shared on Sabinet Africa Journals.
The authors said this would assist the Namibian government in making informed decisions, thus strengthening its invulnerability to the possible effects of the resource curse.
“The study concludes by asserting that the discovery of oil in Namibia should be seen as a prospect for economic diversity rather than an invitation to political instability.”
On the horizon
Namibia's exploration drilling sector is poised for significant growth, with activities expected to surge from 2022 levels and remain relatively steady until 2025.
Mega discoveries in the deep waters off the coast of Namibia have kicked off exploration in the region, and the country, along with Nigeria and Egypt, is expected to drive the deepwater exploration drilling over the period.
This is according to the State of African Energy 2024 Outlook Report.
Notably, exploration efforts in Namibia's deep waters, including the Jonker-1 well, are expected to contribute to this trend.
Furthermore, the country's participation in high-impact well drilling underscores its growing significance in Africa's exploration landscape.
“On the contrary, there have been exits, mainly from exploration licenses, by the majors. Considering there is exploration interest from the majors in regions like Namibia, it can be said that exploration focus from ‘big oil’ can be limited to only certain regions in Africa going forward,” the report stated.
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This finding is in stark contrast to the typical narrative surrounding natural resource discoveries in developing countries, particularly in Africa, where they often lead to political instability and economic challenges.
This is according to a study titled ‘The Political Dynamics of Oil Discovery and the Resource Curse in Namibia’ by Josia Moyo and Nicholas Idris Erameh.
“However, the Namibian government ought to adopt preparatory measures that require analysis of costs versus benefits, analysis of control mechanisms such as state institutions, as well as analysis of opportunities that are to be derived from oil extraction," the authors noted in an abstract of the study shared on Sabinet Africa Journals.
The authors said this would assist the Namibian government in making informed decisions, thus strengthening its invulnerability to the possible effects of the resource curse.
“The study concludes by asserting that the discovery of oil in Namibia should be seen as a prospect for economic diversity rather than an invitation to political instability.”
On the horizon
Namibia's exploration drilling sector is poised for significant growth, with activities expected to surge from 2022 levels and remain relatively steady until 2025.
Mega discoveries in the deep waters off the coast of Namibia have kicked off exploration in the region, and the country, along with Nigeria and Egypt, is expected to drive the deepwater exploration drilling over the period.
This is according to the State of African Energy 2024 Outlook Report.
Notably, exploration efforts in Namibia's deep waters, including the Jonker-1 well, are expected to contribute to this trend.
Furthermore, the country's participation in high-impact well drilling underscores its growing significance in Africa's exploration landscape.
“On the contrary, there have been exits, mainly from exploration licenses, by the majors. Considering there is exploration interest from the majors in regions like Namibia, it can be said that exploration focus from ‘big oil’ can be limited to only certain regions in Africa going forward,” the report stated.
[email protected]
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