By: Erastus Andreas
Walvis Bay and Lüderitz could take on bigger roles in Namibia’s economy as the country moves closer to developing its offshore oil and gas resources.
The two coastal towns are being viewed as potential service and logistics centres for the emerging petroleum industry, creating opportunities beyond the extraction of oil itself.
According to Kornelia Shilunga, Special Advisor and Head of the Upstream Petroleum Unit, Namibia’s oil and gas development will require more than offshore production, with ports, logistics networks, supply bases, roads and airports all expected to support the industry.
Shilunga made the remarks at the Namibia Oil and Gas Conference in Windhoek on 19 August.
She said Walvis Bay and Lüderitz have the potential to become important service and logistics hubs for petroleum activities, while government must ensure that infrastructure keeps pace with developments in the upstream sector.
For local businesses, this could open doors in areas such as marine services, logistics, storage, fabrication and engineering.
Government has identified these activities as part of the wider industries that could grow around the petroleum sector.
The focus on the two coastal towns also points to a broader question for Namibia: whether the country has the infrastructure and local businesses ready to supply an industry that will require specialised services and equipment.
Shilunga said Namibia’s petroleum story should ultimately deliver more than oil production, with the expected benefits including stronger businesses, improved infrastructure, skills development, technology transfer, government revenue and industrial growth.
For Walvis Bay and Lüderitz, the emerging oil industry could therefore become an opportunity to expand their role in Namibia’s economy and position the coastal towns as important links between offshore petroleum operations and the wider economy.
Namibia has also approved the National Upstream Local Content Policy, a move aimed at increasing the participation of Namibian businesses and workers in the country’s emerging oil and gas industry.
Shilunga announced this at the conference.
She stated that the policy will provide clear direction for increasing Namibian participation across the petroleum value chain, including through local businesses, employment, skills and technology transfer, as well as access to procurement opportunities.
She said local content should go beyond simply allowing Namibian companies to participate, stressing the need for local businesses to develop the capacity, expertise and financial strength to compete within the petroleum industry.
The government also wants the development of the petroleum sector to support broader industrialisation rather than having Namibia simply export crude oil.
Shilunga identified opportunities in refining, petrochemicals, gas-to-power, logistics, fabrication, marine services, storage and engineering as areas that could create additional economic activity around the oil and gas industry.
She said Namibia’s petroleum resources should contribute to economic diversification, industrialisation, value addition and employment creation.
The government is also working to strengthen Namibia’s petroleum licensing framework and reviewing the country’s petroleum legal and fiscal regime as exploration and development activities increase.
Shilunga said the ultimate benefit of oil and gas development should be reflected in jobs, stronger Namibian businesses, improved infrastructure, skills development, technology transfer, increased government revenues and industrial growth.
Namibia stands at a critical moment in the development of its petroleum industry.
Over the past few years, significant discoveries in the Orange Basin have fundamentally changed the outlook for Namibia’s upstream petroleum sector.
These discoveries have presented new avenues of growth for the country, but they have also placed on the country’s leadership a responsibility to ensure that the development of the resources translates into sustainable economic opportunities for Namibia and its people.
This would be in contrast to the current economic structure, which has been struggling to reduce inequality and create adequate employment.
