More oil discovered off the Namibian coast
· The South African
QatarEnergy recently revealed another offshore oil deposit along Namibia’s coast.
The deposit, found in Namibia’s Orange Basin, is the eighth successful well drilled within PEL 39.
Visit freshyourfeel.org for more information.
Exploration by other major international oil companies like Shell have increased in recent years.
The continuing trend of finding successful oil reserve points is making South Africa’s neighbour increasingly seen as a potential oil supplier.
NAMCOR’s support for new oil discovery
NAMCOR, The National Petroleum Corporation of Namibia, notes that this is a welcome discovery.
“Together with our joint venture partners Shell and Qatar Energies, we’re very encouraged by these results,” Namcor’s spokesperson Paulo Coelho said to the Namibian Economist this week.
Coelho goes on to confirm that the Namibian oil discovered is good reservoir quality, light oil and very limited associated gas.
Namibia’s oil potential
TotalEnergies SE and Shell Plc made major oil discoveries off the coast of Namibia back in 2022.
Since then, NAMCOR has actively tried to establish the nation as a potential new player in the global oil market.
2024 saw both companies report 2.6 billion barrels of oil resources.
That said, not all oil found has been profitable. In January of this year, Shell announced a $400 million write-down related to an offshore oil discovery in Namibia, deeming the project commercially unviable.
South Africa’s share in the Namibia oil market
The Namibian oil reserves sit firmly in its maritime borders. But this does not mean that South Africa will not benefit from our neighbour’s success.
For one, the Namibian Dollar is pegged to the South African Rand at a 1:1 ratio. An increase in its global demand will mean that the Bank of Namibia must accumulate and hold more South African Rands as backing.
Additionally, Namibia still relies on South African companies for manufacturing. As the Namibian economy reacts to becoming an oil exporter, so too will its larger economy evolve.
Then there is the more obvious and immediate benefit: less reliance on the Gulf states and the geopolitical uncertainty which has plagued them throughout 2026.