Namibia is eyeing membership in the Organization of the Petroleum Exporting Countries (OPEC) as it gears up to leverage its crude oil resources, with ambitious plans envisioning a daily production capacity of 700,000 barrels per day (bpd) by 2030, marking its inaugural year of production.
Speaking at a recent online event, Namibia’s Petroleum Commissioner, Maggy Shino, highlighted OPEC’s role in ensuring sustainable market dynamics, indicating the nation’s eagerness to align with the oil group. Reports suggest that discussions regarding Namibia’s potential membership have already commenced.
According to unnamed sources and the executive chairman of the African Energy Chamber, OPEC is keen to welcome Namibia into its fold. Initial discussions may involve Namibia joining the OPEC Charter of Cooperation before progressing to full membership, similar to Brazil’s recent inclusion in the charter earlier this year.
NJ Ayuk, of the African Energy Chamber, characterized OPEC’s approach as a “charm offensive” towards Namibia. However, Namibia’s Minister of Mines and Energy, Tom Alweendo, clarified that formal talks regarding OPEC membership had not yet taken place, emphasizing that such considerations would arise only after the commencement of oil production.
This anticipated production commencement is on the horizon, with major oil players already invested in Namibia’s offshore resources. Supermajors like Shell and TotalEnergies, alongside Qatar Energy and UK-listed Australian company Global Petroleum, lead the charge. Additionally, Chevron, Portugal’s Galp, and Rhino Resources are actively exploring for oil in the Orange Basin.
Noteworthy discoveries, such as Shell’s Graff and TotalEnergies’ Venus, hold significant promise for Namibia’s oil prospects. Estimates suggest Graff could contain up to 1.7 billion barrels of oil and gas, while Venus boasts even larger reserves, potentially reaching 3 billion barrels of oil equivalent.
Prime Minister Saara Kuungongelwa-Amadhila highlighted Namibia’s burgeoning potential, citing recent discoveries and projecting the nation’s rise among global oil producers by 2035.
Namibia’s potential accession to OPEC could bolster the cartel’s influence in oil price control efforts. With the possibility of adding 700,000 bpd to OPEC’s production capacity, and potential future expansions through exploration successes, Namibia’s integration could strengthen OPEC’s strategic position in the global energy landscape.