After decades of exploration, exploitation and technological advances, it would seem almost impossible to find large undiscovered resources on earth. However, cases such as that of small Guyana or Namibia are showing that there are still great riches that man has not been able to access. The case of the African nation (Namibia) has gained vital importance in recent weeks. Although the large discoveries of crude oil have been made for a few months now (there is talk of up to 10,000 million barrels), several companies continue to announce new discoveries as the surrounding areas are explored and tracked. This is the case of the Portuguese Galp, which has turned Namibia into its particular goose that lays golden eggs.. In the last month, Galp has announced three discoveries in the waters of this African giant (giant by extension), two of oil and one of gas. All in all, in 2024, the shares of the Galp firm have risen more than 25% despite the fact that oil prices have decreased during the year. The Portuguese company will get less for each barrel sold, but it will sell many more barrels of crude oil in the future thanks to Namibia.
The Portuguese oil company Galp announced this week the discovery of two new reservoirs of “good quality”, one for light oil and another for condensate gas, in Namibia, where it explores several wells. In a statement sent to the Portuguese Securities Market Commission (CMVM), the company explained that it successfully drilled well number four in the area, called Mopane-2A.
There he found a column of gas condensate hydrocarbons and another of light oil in a smaller reservoir. “Both reservoirs showed good quality sand, with good porosity and permeability, high pressures and low fluid viscosities, with minimal concentrations of CO2 and no H2S,” highlighted the oil company, which specified that, in line with previous wells, they did not contacts with water were found.
“Galp and its partners will continue to analyze and integrate all new data to allow a better understanding from the Mopane complex. Galp will continue to evaluate the commercial viability of the discoveries,” he added. The work will now be directed to the drilling of the fifth well. Galp (with 80%) is part of a consortium along with the Namibian firms of Namcor and Custos that have a 20% (10% each).
This is the second discovery in a month. On December 3, Galp successfully logged the Mopane-1A appraisal well in block PEL83, where it encountered light oil and gas condensate in high-quality reservoir-bearing sands. The findings of this third evaluation well “indicate once again good porosities, high permeabilities and high pressures, as well as low viscosity characteristics of the oil with a minimum of CO2 and without H2S concentrations,” says Galp, which is the operator of the block, in a statement to which elEconomista.es has had access.
The appraisal well confirms the extent and quality of oil and condensate discoveries to date, the Portuguese firm says. Galp and its partners will continue to analyze and integrate all newly acquired data, as they move forward with upcoming activities, including exploration and evaluation (E&A) wells, and a proprietary high-resolution 3D seismic campaign which has started in December 2024, as revealed by the Portuguese company.
It is worth remembering that the Portuguese company Galp announced in April that its Mopane field, located in the PEL 83 block, could hold at least 10 billion barrels of oil, positioning it as one of the largest discoveries in the Orange Basin. After completing initial tests on the Mopane-1X and Mopane-2X wells, Galp has begun the sale of 50% of its interest in Mopane, where it currently owns 80%. The remaining partners are the Namibian state-owned Namcor and Custos Energy, a subsidiary of Sintana Energy.
The nerve center of exploration
All in all, Namibia has become a hotspot for oil exploration following several discoveries in recent years along its coast, cementing its position as an emerging player in the global energy industry. Although the country has not yet produced oil or gas, giants in the sector such as TotalEnergies and Shell has identified deposits estimated at 2.6 billion barrels. According to forecasts, production will begin in this southern African nation around 2030, marking a milestone in its economic development. Among the most promising discoveries is the Orange Basin, although other areas such as the Lüderitz, Kavango and Walvis basins are also emerging as regions with high energy potential.
The American giant Chevron plans to start exploration activities this year. In April 2024 it signed an agreement to acquire an 80% operating stake in an offshore block in the Walvis basin, consolidating its position in the Namibian market. Additionally, Chevron Namibia Exploration acts as operator of Petroleum Exploration License (PEL) 90, a block located in deep waters of the Orange Basinconsidered key for the future oil development of the country.
The collaboration between the Italian Eni and the British BP, through their joint venture Azule Energy, has allowed them to sign a participation agreement in May, acquiring a 42.5% interest in an exploration license in the Orange Basin. This association reinforces the attractiveness of Namibia for large multinationals in the energy sector, consolidating it as a strategic investment destination.
The great discovery of 2022
In February 2022, Shell and its partners, including QatarEnergy and Namcor, announced a promising discovery in an exploration well off the coast of Namibia, within PEL 39, a 12,000 square kilometer area in the Orange Basin. According to estimates, the Graff well could contain 2.38 billion barrels of oil, while the Jonker-1X would hold another 2.5 billion, consolidating this region as one of the richest on the African continent.
With a presence in Namibia dating back to 1964, TotalEnergies has become a fundamental player in hydrocarbon exploration in the country. In January 2024, the company acquired additional interests in blocks 2913B and 2912, located in the Orange Basin. This year, TotalEnergies will allocate 30% of its exploration and evaluation budget, estimated at $1 billion, to projects in Namibia. Block 2913B contains the Venus 1-X well, which could hold about 5.1 billion barrels of oil. The first oil production from this block is expected to begin between 2029 and 2030, which will mark a momentous change in the country’s economy.
The Namibian coast, with its combination of deep waters and untapped fields, is in the crosshairs of the world’s largest oil companies. According to Reutersthese activities will not only transform its economy, but will also place the country at the center of the global energy map. With resources estimated at several billion barrels and strategic agreements with international companies, Namibia is preparing to emerge as a new giant in the oil industry.
With a population of approximately 2.7 million inhabitantsNamibia is one of the least densely populated countries on the planet. It is estimated that it is the sixth country in the world with the lowest population density, only behind areas such as Greenland or Mongolia. Its population density is only 3.7 inhabitants per square kilometer (in the so-called ‘Spanish Lapland’ the density exceeds 8 inhabitants per square kilometer, to give you an idea). Namibia is one of the largest deserts in the world.
Its (Namibia’s) population is made up of a rich ethnic and cultural diversity, with various ethnic groups such as the Ovambo, Herero, Nama and San, each with their own languages and traditions. Despite this diversity, English is the official language, which makes business much easier, although many people also speak Afrikaans and indigenous languages. In religious terms, the majority of Namibians are Christians, with Lutheranism being the predominant denomination due to the influence of European missionaries during colonial times.
This country wants be the new king of African oil (and unseat Nigeria). The advantage they have over Nigeria is that, with only 2.7 million inhabitants, almost any oil production will positively impact the population. It has been seen throughout history that countries with relatively small populations have benefited much more from large oil discoveries than large populations. It seems logical, since when a cake is divided among a few, each piece is usually larger than when the cake has to be distributed among many.
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