Namibia has the potential to replicate Guyana’s success in the oil sector, said NJ Ayuk, Chairman of the African Energy Chamber.
In a recent conversation with Petroleum Economist’s editor-in-chief, Paul Hickin, Ayuk praised both countries for their rich geological resources but emphasized the importance of regulatory and fiscal frameworks to move resources into production.
“Having oil is not enough. The ability to have the right kind of regulatory and fiscal frameworks is crucial,” Ayuk stated. He highlighted Guyana’s roadmap, noting, “They discovered around 2015. They kept the fiscals in check. They worked collaboratively with energy companies, with ExxonMobil.”
He said that Namibia now has the opportunity to show the world “what energy can do.”
Exxon to surpass half billion barrels of cumulative oil production in Guyana by yearend | OilNOW
Current production numbers offshore Guyana are over 600,000 barrels per day (b/d) from Exxon’s three Stabroek Block projects. Guyana is on track to push its combined production to 1.3 million b/d by 2027.
Ayuk stressed the importance of getting local content and fiscal policies right, maintaining contract sanctity, and fostering a stable environment for rapid production, stating, “It starts with getting local content right. It starts with getting those fiscals right. It starts with looking at the sanctity of contracts and the production climate.”
Ayuk is confident in Namibia’s potential, saying, “There is still a lot more hydrocarbons to be found in Namibia.” He urged the country to follow Guyana’s example to harness its energy resources effectively.
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Guyana and Namibia have similarities in their oil exploration paths. Guyana’s resources are estimated at more than 11 billion oil-equivalent barrels. Guyana’s is the accumulation of more than 30 discoveries in the Stabroek Block alone.
Namibia’s discoveries were estimated to be the same up to August last year, by the National Petroleum Corporation of Namibia (NAMCOR). The estimate was spread over three finds, with TotalEnergies’ Venus-1X discovery accounting for nearly half. The Graff-X1 and Venus-X1 Namibia finds, according to Westwood Global Energy Group, share similarities with the Guyana-Suriname Basin. However, additional exploration success by Galp Energia, announced in January, could place the estimate higher.
Guyana and Namibia are expected to be pivotal exploration hotspots in the coming years.
