Is Namibia Serious About Oil?

International energy company TotalEnergies has made its intentions clear to “develop the offshore Venus Field to produce oil for commercialisation”, 320km from Lüderitz into the Atlantic Ocean and at a depth of 3 000 metres.It’s still early days when it comes to deciding whether the production of light crude oil will take place for sure, but TotalEnergies and its joint venture partners – the National Petroleum Corporation of Namibia (Namcor), Qatar Energy and Impact Oil & Gas – are advancing with feasibility studies by applying for an environmental clearance certificate.The question is, are Namibia’s authorities (and common citizens to a lesser extent) serious and ready to engage giant international oil companies to ensure all parties get the most out of the eventual benefits?When former president Hage Geingob remarked that “the oil is not ours”, there was massive backlash from critics who interpreted the comments in the most simplistic terms, accusing him of giving away Namibians’ resources for a song.

Without direct reference to Geingob, Natangwe Ithete, now deputy prime minister, ramped up populist fervour by demanding that Namibians should own at least 50% of the resource or investors “must pack up and go”.President Netumbo Nandi-Ndaitwah has since given Ithete the bloated portfolio called the Ministry of Industries, Mines and Energy while keeping the responsibility of oil and gas in her office with little clarity on how it will operate.About a month has passed since the creation of the oil and gas portfolio in the Presidency and it remains unclear what the next steps are.



We can only imagine that oil companies are as lost as we are over the state of limbo when it comes to the portfolio, apart from the fact that the petroleum commission and Namcor are now under the Office of the President.In the world of energy investment, certainty is as valuable as the resources beneath the ground. It is, therefore, imperative that the president provides clarity on which authority oil companies will report to.

Leaving such a critical question unanswered creates a leadership vacuum – one that risks weakening Namibia’s standing as a stable investment nation.For years, especially after announcements of potentially major oil discoveries being made, there has been talk of a lack of clarity about areas crucial to oil production.The main focus for many is about so-called local content reference about how Namibian businesses will take part in the value chain of the oil production business, covering food supplies to oil rigs and expert services such as mechanical work and direct employment.

More crucially, oil companies have been asking how their investments will be guaranteed over more than 20 years if they were to pump in billions of dollars to extract oil.Civil society organisations have, to a large extent, been waved away by government officials when they’ve demanded transparency and that anti-corruption measures be put in place.The longer the vacuum continues, the more mute the debate about who the oil belongs to and what benefits Namibians would gain from the production of say 150 000 barrels a day.

Asked last year about why they chose to invest US$6 billion (about N$112 billion) in Angola instead of Nigeria, where oil is much easier to produce, TotalEnergies chief executive Patrick Pouyanné said Angola offered a stable policy framework which is crucial before making an investment decision.“You love to debate. There is always a new legislature in Nigeria about a new petroleum law.

When you have such permanent debates, it’s difficult for investors looking for long-term structure to know what direction to go,” Pouyanné was quoted in the media.Is Namibia going to engage in such fruitless and endless debates or will we get the right expertise from countries like Norway to put in place the best deal for the broader population?Are we willing to chase investors away, Ithete-style, with populist remarks that don’t seem to appreciate the essence of give and take?Or will we follow the route of Guyana, who’s population seem to now complain they were short-changed by oil giant ExxonMobil, when it appears the government failed to get top negotiators and expertise on their side?Time is of the essence. Namibia needs to get deeply serious about oil and other industries if Namibians are to derive the best benefits from foreign and local investments.

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