By: Selma Taapopi
The Petroleum Commissioner within the Ministry of Mines and Energy, Maggy Shino said Namibia still has a long way to go before it becomes an oil producing country, because it will take significant time and billions of dollars in investment to move from oil discovery to production. Shino said that only after four years of oil production will the government get revenue. Shino made the remarks to the parliamentary standing committee on natural resources at a recent stakeholder's engagement.
"I know we have had a discovery. There has been announcements, there has been a hype of jubilation and people have been happy but what we need to understand is that for us as explorers, we still have a very long journey ahead of us before we can be able to change the Namibian narrative to say that we are an oil producing nation," remarked Shino.
She further explained that the government will benefit between 55 and 65 percent in revenue per barrel once production begins. Shino added that Namibia should remain competitive as the oil discoveries came at a time when issues of energy transitions were at the fore and the world is moving away from fossil fuels, thus attracting investment will be challenging.
"It is a challenge for us as Namibia because we need to remain competitive for us to realise those resources for them to have a meaningful impact to our economy," said Shino during the last day of the two-day event.
The Petroleum Commissioner added that exploration activities in Namibia started in 1973 which resulted in the Kudu Gas Field discovery. To date, Namibia has drilled a total of 32 dry wells which cost the government an estimated U$ 50 million.