Namibia’s offshore oil and gas exploration is continuing its rapid expansion, with recent developments indicating that the success of the Orange Basin is spilling into the promising Walvis Basin.
Bowmans senior partner Irvin Titus highlights the growing interest in Namibia’s offshore sector, particularly the northward shift of activities into the Walvis Basin.
“Since 2022, there has been a clear acceleration in merger and acquisition transactions, and we are now seeing this trend extend northwards towards the Walvis Basin.
“This expansion is a promising sign for further offshore exploration and signifies Namibia’s growing importance as an energy player in the region,” he says.
Chevron Namibia Exploration has taken a significant step by assuming an 80% operated interest in petroleum exploration licence (PEL) 82, which covers blocks 2112B and 2212A in the Walvis Basin.
This strategic move is further strengthened by the involvement of existing partners, the National Petroleum Corporation of Namibia (Namcor) and Custos Energy, which each retain a 10% carried interest in the licence.
The Walvis Basin’s potential continues to draw attention, with Global Petroleum actively exploring PEL 94 and engaging in discussions for farm-in opportunities with potential partners.
Titus says the ongoing exploration efforts signal growing confidence in Namibia’s offshore hydrocarbon potential.
Industry experts anticipate that drilling activity will intensify in the coming years.
He attributes this momentum to the significant discoveries made over the past few years, pointing out that 2022 marked a pivotal shift in merger and acquisition (M&A) activity following major finds.
Before that, activity remained limited, mainly due to the slow pace of entry into Namibia’s exploration market.
“The onset of Covid-19 in 2019 further contributed to the slowdown in deal-making. However, the recovery since 2020, paired with the resurgence of cash flows, has driven a strong boom in M&A activity,” he says.
Meanwhile, petroleum commissioner Maggy Shino says offshore exploration, particularly in the Orange Basin, has laid the groundwork for broader discoveries along Namibia’s entire offshore margin.
“Our analysis confirms that the petroleum source rock that unlocked the Orange Basin extends across Namibia’s entire offshore margin. From the Walvis to the Lüderitz Basin, we are observing deepwater fan systems with high hydrocarbon potential,” she says.
She notes that the prospectivity of the Walvis Basin is immense, and the government anticipates continued exploration success in the coming years.
Shino also emphasises that local content remains a cornerstone of Namibia’s resource strategy.
Agreements between the government and industry mandate compliance in areas such as competitive bidding and the prioritisation of Namibian goods and services.
“There should be no imported drilling mud if Namibian plants at Walvis Bay are operational.
No imported bentonite if our local supply is available. We must support those businesses that have invested in Namibia and created local jobs,” she adds.
