The Namibian Oil Discovery Could Have Major Implications For Climate Change
Namibia is preparing to become the third African nation to produce oil after Ghana and Mauritania. The country has discovered a significant amount of light crude, a move that could have huge implications for climate change.
The discovery was made by NAMCOR, in collaboration with Shell and Qatar Energy, a Norwegian company. The find is located 270 kilometers offshore in the Orange Basin.
Using a portfolio approach, Africa Oil is able to gain significant exposure to some of the most attractive exploration plays in the world. This strategy limits the Company’s financial exposure to any one discovery.
The last decade has seen 25 giant discoveries in Africa, more than any other region. This has transformed East Africa into a vast hydrocarbon province, and expectations have skyrocketed across the region. The explorers who made these finds have become hugely successful, and they are now expected to deliver more discoveries.
Despite the recent downturn in the oil price, deepwater Africa remains an attractive prospect for companies large and small. Its low entry costs in frontier basins make them ideal for exploitation, and there are plenty of opportunities to find new oil and gas reserves. This is why Africa continues to attract a lot of attention from the global industry. Namibia’s 6.3 million-acre Kavango Basin is a prime example. Total Energies SE in February announced a major find in the basin.
Oil is the lifeblood of industrialized nations, allowing them to eradicate energy poverty and ensure economic development. However, it is also the source of environmental degradation and climate change. Many experts believe that it is essential to transition to a clean energy economy, but it will take time.
Recently, the discovery of a new oil field in Namibia was made public. This discovery is expected to bring in a lot of revenue for the country.
The field was discovered by ReconAfrica, an exploration company. The company claims that the discovery contains 120 billion barrels of oil. This is enough to change the economic landscape of Namibia and Botswana and make every investor who owns a share in ReconAfrica rich.
The discovery has caused a lot of speculation in the industry, and the rumors are flying. However, ReconAfrica’s claim is based on geological evidence. The rocks in the basin were cooked by the Earth’s internal heat and pressure when they were formed.
Africa remains one of the most dynamic continents for oil and gas investment and development. While the recent fall in global commodity prices temporarily slowed progress, it is now picking up momentum.
Angola’s new law makes it easier to invest in exploration and production projects. It also reduces the minimum capital requirement and allows repatriation of funds. The law also eliminates the requirement that local investors take a 35 percent stake in foreign investments.
But even the continent’s newest producers face challenges. NRGI’s analysis shows that Uganda and Senegal, for example, have much of their future production locked in high-cost projects that companies might not develop. In addition, these countries are less likely than others to have institutions in place that can manage petroleum revenue wisely. This could lead to the country missing out on important benefits from the industry. It could also deprive host communities of their rightful share of proceeds. It may also result in corruption and mismanagement of these revenues.
When buried under the right conditions, organic matter can turn into oil, which has powered the world economy for decades. However, there are also many risks associated with oil exploration. In addition to the risk of environmental pollution, oil exploration can cause social conflict, particularly among indigenous peoples.
In Namibia’s remote northeastern corner, a Canadian company named ReconAfrica has secured rights to explore what could be the next – or maybe even the last – big onshore oil find. The company has leased more than 9 million acres in the sedimentary Kavango Basin, which spans Namibia and Botswana.
The ReconAfrica rig is currently drilling three test wells in the Kavango Basin, which holds some 120 billion barrels of potential oil reserves. This is one of the biggest oil discoveries in Sub-Saharan Africa in recent years, and it’s likely to be a major contributor to Namibia’s economy. If the find proves successful, ReconAfrica will drill hundreds of additional wells in Namibia and Botswana.