Namibia has been advised to formulate a clear and detailed gas master plan to optimize the use of its significant gas reserves for economic development.
Petroleum economist Dr Riverson Oppong made the recommendation during the 2nd Namibian Oil and Gas Conference in Windhoek.
The conference was held under “The Next Step Towards a Prosperous Oil and Gas Industry to Power Namibia’s Sustainable Future.”
Dr Oppong highlighted Namibia’s recent discovery in the Orange Basin, which includes an estimated eleven billion barrels of light crude oil and 2.2 trillion cubic feet of natural gas.
Given Namibia’s relatively low population, the country is positioned to experience substantial economic growth from its oil and gas resources.
In his panel discussion, Dr Oppong stressed that Namibia should avoid the mistakes made by other countries, such as Nigeria, which has long flared gas to the detriment of the environment. Instead, he advocated for leveraging gas for commercial use.
He praised Ghana’s President Nana Akufo-Addo for his decision to trap excess gas for electricity generation and job creation, contrasting this approach with Nigeria’s longstanding practice of gas flaring.
Due to its vast petroleum potential and land space, Dr Oppong applauded Namibia’s ambition to become an African energy hub.
He encouraged Namibia to challenge established oil and gas leaders in Africa, such as Nigeria, Angola, and Libya.
“Namibia has the land and resources, and with its potential in hydrogen gas and solar energy, it can leverage these assets effectively,” he said.
However, Dr Oppong also cautioned Namibia to invest the revenue from oil and gas sales into sustainable energy projects and to develop appropriate fiscal regimes to maximize revenue generation.
He emphasized the importance of negotiating favourable petroleum agreements with international oil companies (IOCs) to avoid unfavourable terms.
“Other African countries have struggled with managing petroleum revenues effectively. I hope Namibia can learn from these experiences and make prudent decisions,” he advised.
Ghana’s Ministry of Energy, the Petroleum Commission, and the Ghana National Petroleum Corporation (GNPC) will host a Namibian delegation in Accra in September.
The visit aims to share insights on implementing local content legislations and to help Namibia avoid past negotiation mistakes while developing its gas master plan.
Namibia is also expected to amend its petroleum legislation to accommodate recent discoveries and unlock transformational opportunities.
Establishing a technically and financially capable national oil company, NAMCOR will be crucial in managing the country’s petroleum resources and ensuring that the benefits are equitably distributed among Namibians.