By: Nghiinomenwa-vali Hangala
Final investment decisions are expected on two oil exploration wells this year, namely the Mopane and Venus Blocks, which could reshape Namibia’s economic structure and trajectory.
According to the Namibia Oil and Gas Bi-Annual Industry Report by Ardhi Namibia Energy Consultancy (July-December 2025), a number of wells have been drilled in the Namibian ocean and tested for signs of oil and gas. Released earlier this month, the report documented about 10 blocks in Namibian waters and one in the Kavango area.
With two of them indicated as positive commercial barrels worth pursuing, however, the major oil companies involved have yet to make a final investment decision on whether to pour in capital and build the required infrastructure for oil extraction.
One of the most promising blocks is the Mopane block, where Galp Energia and partners have estimated that it may contain at least 10 billion barrels of oil equivalent (Original Oil in Place (OOIP)), according to the industry report.
The drill stem test at Mopane-1X achieved a flow rate of up to 14,000 barrels of oil equivalent per day (boe/d), reaching the maximum test limit. However, no revised recoverable resource figures were formally published during 2025, but ongoing integration of well, pressure, and seismic data analysis continues and is expected to underpin future contingent resource estimates.
The report indicated that no Final Investment Decision (FID) was taken in 2025, with the Mopane project remaining in the appraisal and concept-select phase. This decision is expected to be made during 2026 as part of development planning.
Plans include Floating Production, Storage and Offloading (FPSO) infrastructure and subsea planning towards development ramp-up, according to the report.
The partners in the Mopane wells are Galp Energia, TotalEnergies, NAMCOR, and Custos after an asset swap that confirmed TotalEnergies as operator, with three more wells planned for 2026.
As for the Venus wells, the report indicates that the block has an estimated recoverable resource of around 5.1 billion barrels of oil. The partners involved are conceptualising a large-scale FPSO-based development with projected plateau production of around 150,000 barrels of oil per day.
According to the report, the Venus wells are expected to deliver first oil between late 2029 and early 2030.
To date, no revised official reserve figures have been published, however, the report indicated that there are ongoing engineering and reservoir studies aimed at optimising recoverable volumes and development phasing. The FID for Venus wells is also expected this year as part of broader Venus’s planning cycle.
One of the oil exploration companies, Rhino Resources, which found light oil in early 2025 in the Capricornus well in Namibia’s Orange Basin, has spent approximately N$3.5 billion (US$213 million) across the three-well campaign.
According to the Oil and Gas Industry Report, Rhino Resources and partners’ monthly local expenditure is estimated at N$70 million (US$3.75 million) during drilling operations. The towns of Lüderitz, Walvis Bay, and surrounding areas benefitted from services such as accommodation, logistics, fuel supply, and marine support.
The Orange Basin has been the focal point of substantial exploration activities, with companies like Shell, TotalEnergies, and Galp making notable discoveries. These developments, in collaboration with Namibia’s national oil company, NAMCOR, are positioning the country as a potential hub for energy production in the region.
During the second half of 2025, the industry moved decisively beyond early-stage wildcat drilling into more advanced phases of appraisal, pre-development studies, and project maturation.
The report indicated that operators are increasingly focused on delineating discovered resources, refining development concepts, and reducing geological and commercial uncertainty, signalling a transition towards long-term project viability rather than speculative exploration.
Moreover, Africa Provider Offshore Services CEO, Veronique Herman, has advocated for a level playing field, saying Namibia welcomes global partners, their technology, and their capital. However, she explained that participation must occur within a framework of mutual respect and legal parity.
“All players, both domestic and foreign, must adhere strictly to Namibian taxation and labour laws,” Herman noted. She stated that when foreign entities bypass domestic obligations, they do more than deprive the state of revenue; they create an unfair competitive advantage that stifles homegrown enterprises.
“True investment respects the host nation’s regulatory environment,” she said.
Herman added that in the high-stakes world of energy, Namibian businesses must collaborate and form strategic consortia to build the scale required for major contracts, noting that such collaboration “ensures the wealth generated by Namibian resources stays within our borders to build our schools, hospitals, and infrastructure.”
Herman added that the path ahead is complex, and Namibia will encounter its own set of challenges. However, there is dignity in ownership, stated Herman.
“Any mistakes made will be ours to learn from, ensuring that the lessons remain here to strengthen our institutions for generations to come,” she remarked.
erastus@thevillager.com.na
