Recent analysis of Namibia’s electricity market by Frost & Sullivan, published in a report titled ‘The Future of Namibia and Energy’, suggests that Namibia’s economic growth potential lies in the expansion of its mines, an increased need for energy independence and the potential discovery of oil and gas. “A breakthrough in the oil and gas sector in Namibia, which is relatively underexplored, holds enormous potential for the country,” said Frost & Sullivan’s energy and environmental research analyst, Muneera Salie. She said rapid growth of the oil and gas sector was expected over the next five years, with the exploration of six to eight new wells commencing within two years. Another global oil and gas company, OMV, announced earlier this month that it was taking the next step to expand its exploration business in sub-Saharan Africa by entering an offshore exploration project in Namibia. OMV chief executive, Gerhard Roiss, noted in a statement that the transaction involved the acquisition of a 65% interest in two exploration blocks by Murphy Luderitz Oil Co, (Murphy) and OMV from the Brazilian company Cowan Petroleum. OMV will take 25% while Murphy will be the operator of the joint venture, with an interest of 40%. Cowan will retain 20% equity, with the remaining 15% held by the Namibian national oil company NAMCOR. The joint venture partners will conduct an extensive 3D seismic programme starting during the second quarter of 2014. Jaap Huijskes, OMV executive board member responsible for exploration and production, commented: “Offshore Namibia offers great exploration potential as it is largely unexplored, yet has all the elements of an effective hydrocarbon system."
