'Oil discovery important for Namibia's economy'

SWAKOPMUND - A major oil discovery would be important for Namibia in these times of a volatile and challenging business environment characterised by a slowdown in the Namibian economy, the minister of mines and energy, Tom Alweendo said Wednesday.Achieving this would however require collective effort from both government and the private sector through the realisation of the importance of continuous oil and gas exploration activities, Alweeno said during the opening of the third Namibia Oil and Gas Conference in Swakopmund.“We value investment in our oil and gas sector both upstream and downstream and as of recent, about 18 exploration wells have been drilled offshore Namibia and although with no major discovery, yielded an excellent geological understanding of the Namibian offshore margin,” he said. He encouraged further investment by private entities in that space while government provides a conducive environment by ensuring a stable policy framework. Namibia has one of the most favourable petroleum fiscal regimes and incentives in Africa that encourages equitable sharing of economic benefits when a discovery is made, Alweendo said.IncentivesSome of its key features include a 35% petroleum income tax levy, state royalty of 5% and negotiable additional profit tax when the internal rate of return is greater than 15%. “The incentives that the sector offers include the off-road marine diesel fuel rebate, no capital gains tax, lowest royalty in the region, customs exemptions on importation of equipment and consumables and ease of conducting business in Namibia as indicated by our high ranking on the Fraser Competitiveness Index.”Alweendo called for investment in Namibia, saying with petroleum legislation that is attractive and based on international best practices, Namibia is the best place for investments. The two-day conference which was organised by RichAfrica Consultancy and endorsed by government, is taking place under the theme “Building partnerships to transform Africa’s oil and gas industry.”It is aimed at among others ensuring investor understanding of Namibia’s geological database of information, facilitating investment links between project owners and investors, as well as gaining an understanding of Namibia’s upstream /downstream petroleum landscape.The conference was attended by delegates from all over the world and ended yesterday. - Nampa

'Oil discovery important for Namibia's economy'

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Namibian Sun 2025-06-19

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'Oil discovery important for Namibia's economy'

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Namibian Sun 2025-06-19

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