Namibia’s Potential as Africa’s Next Oil Producer Draws OPEC’s Attention

As Namibia gears up to potentially become Africa’s fourth-largest oil producer by the next decade, the Organisation of the Petroleum Exporting Countries (OPEC) is eyeing the southern African nation for potential membership.

Recent discoveries by TotalEnergies and Shell, totalling around 2.6 billion barrels of oil, have positioned Namibia to commence production by 2030. These discoveries have sparked interest from OPEC, with discussions ongoing about Namibia’s potential membership.

Namibia’s Petroleum Commissioner, Maggy Shino, expressed the country’s desire to join the OPEC “family,” citing the organization’s role in ensuring sustainable management of oil market dynamics. With projected peak production capacity of 700,000 barrels per day by 2030, Namibia stands to significantly contribute to Africa’s oil production landscape.

Also Read: Namibia Summons European Envoys Over Meeting with Opposition Party

The initiation of talks between OPEC and Namibia reflects the organisation’s interest in expanding its membership amid shifts in the global oil market. However, Minister of Mines and Energy Tom Alweendo stated that OPEC membership is not currently under consideration, stressing the need for Namibia to commence production before formal discussions can take place.

Namibia’s potential oil revenue could be transformative for its economy, with plans underway to establish a sovereign wealth fund to manage the windfall responsibly. Draft legislation is being developed to govern fund operations, ensuring that revenue is collected, invested, and deployed for the benefit of future generations.

As discussions between OPEC and the Namibian government continue, the country remains cautiously optimistic about its oil prospects. While the commercial viability of the discoveries is yet to be confirmed, Namibia’s journey towards becoming a significant oil producer has captured the attention of global energy players and organisations like OPEC.