Navigating Oil Industry: Namibia seeks lesson from Venezuela

Nov 27, 2023 News

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Kaieteur News – In preparation for its imminent entry into the oil production arena, Namibia recently conducted a seminar, seeking valuable insights from Venezuelan oil and gas experts.

Venezuela is the country with the world’s largest oil reserves, pegged at over 300 billion barrels. After a period of flourishing in the nineties and early 2000s, the first oil price slump of the new millennium crippled the Venezuelan economy. Before it had a chance to recover, the United States slammed it with sanctions that have decimated output: in 2022, the average was 600,000 to 700,000 barrel per day (bpd), while exports averaged a little over 600,000 bpd.

A section of the gathering at the seminar (Photo taken from EmbaVENamibia)

The seminar, organized by Namibian Institute of Public Administration and Management (NAPAM) and the National Petroleum Corporation of Namibia (NAMCOR), covered various aspects of Venezuela’s oil journey, including historical perspectives, wealth distribution, environmental considerations, and global market dynamics.

The seminar had notable participation of experts from Venezuela’s state-run oil company PDVSA as part of the bi-national cooperation route.

Namibia, emerging as a global exploration hotspot, holds approximately 11 billion barrels of oil in recently discovered offshore fields. Notable contributions from Shell, Total Energies, Chevron, ExxonMobil, and Galp Energia have propelled the nation’s status in the oil and gas sector.

The seminar, attended by key figures such as members of the National Assembly, Local Authorities, Regional Council, and representatives from Public Enterprises, aimed to equip participants with a deeper understanding of managing oil resources.

The Namibian reported that Venezuelan energy experts shared best practices, advising Namibia to create a comprehensive database of skilled workers across the oil and gas value chain.

Speaking at a public seminar on oil discovery on Thursday, senior Venezuelan exploration adviser Jose Humberto Sánchez shared key lessons on how the country should utilise its oil projects to create employment. “When we look at a project that is due to start in the next few years, a census takes place to capture the available skilled workers. When workers are not available, we upskill their expertise in anticipation of the project,” he said.

A senior official at the Namibian Institute of Public Administration and Management (Nipam), Metusalem Nakale, said capacity development would determine the country’s ability to benefit from oil discovery.

“Our approach should be sustainable, equitable and people-centred,” he said.

The seminar was organised in collaboration with the embassy of Venezuela, the Ministry of Mines and Energy, and the National Petroleum Corporation of Namibia.

Speakers emphasised the role of training institutions and universities to address the skills gap in the petroleum and gas industry.

The institutions were urged to draw lessons from other countries, like Venezuela, which have made progress in the sector.

NAMCOR Senior Geologist Alina Narubes said Namibia currently has 34 active exploration licences. “Namibia has favourable fiscal regimes, coupled with a proven petroleum system which has attracted major oil and gas companies,” she said.

Moreover, S&P Global reported that Namibia — often dubbed the “new Guyana” following a trio of massive oil finds — is scrambling to manage a potential oil boom that could transform the country’s economic prospects, with large-scale investment already from global players Exxon, TotalEnergies and Shell, and first oil predicted as soon as 2026.

“There is a real desire on the part of the Namibian government at all levels … to do this as quickly as possible and to harness this opportunity,” Robert Bose, president of Sintana Energy, which has stakes in four offshore blocks, told S&P Global in an interview. He added, “That is being counterbalanced by a very strong desire to ensure that, through the development of local capacity, the local stakeholders, citizens and the nation as a whole benefit maximally.”

The episode followed a recent exploration blitz in the Orange Basin, which Bose called “literally the most exciting exploration basin in the world”.

“It is possible that within the next four quarters we could have three or more exploration wells drilled on our blocks including a well on each block by each of these operators with no additional capital required from us,” Bose said. “In the next 12 months there could be discoveries on three different blocks.”

The discoveries could make Namibia — which shares a border with OPEC member Angola — one of Africa’s major oil producers. “I think broadly speaking the idea that Namibia will be the next Guyana holds water in the sense of the scale of its potential and importance in the global exploration and future supply picture,” Bose said.

 

 

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• A section of the gathering at the seminar, and Galp Energia have propelled the nation’s status in the oil and gas sector., Chevron, ExxonMobil, Shell, Speakers emphasised, Total Energies, Venezuela is the country

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