SA’s offshore oil potential exposed by neighbour’s Norwegian scale strikes.
In this Op-Ed, the DA’s shadow minister of Mineral Resources James Lorimer shares some really good news for South Africa on the energy front. He writes that Namibia has become one of the world’s most sought-after offshore oil exploration destinations, with oil companies discovering oil three times in the same area over the past year. Two more wells are being drilled, and 10 more wells will be drilled by year-end. This could bring Namibia’s government receipts from oil and gas in ten years to be equivalent to Norway’s. The geological trend where the discoveries are being made also extends into South African waters. The Orange Basin is a new geological feature that could significantly impact South Africa’s economic health and social development.
By James Lorimer MP*
They struck oil in southern Namibian waters last month. Again. In the last year, oil companies have hit oil three times in the same area, making Namibia one of the hottest offshore oil exploration destinations in the world right now.
Two more wells are being drilled at the moment and after that, up to 10 more wells will be drilled this year. By year-end, Namibia may have as many as 5 or 6 fields having had exploration and appraisal wells drilled
One industry insider says in ten years, Namibia’s government receipts from oil and gas will exceed their current income and will be equivalent to those of Norway.
South Africa’s prospects of finding similar fields are excellent as the geological trend where the discoveries are being made extends into South African waters. This should be the first really good piece of economic news in a while. The ANC government though, could still blow it, hampering development with legislation that makes it unattractive to drill.