Namibia’s growing profile as a frontier oil destination continues to attract robust investor interest, with foreign direct investment (FDI) surging to N$12.6 billion (approx. US$655 million) in the fourth quarter of 2024, according to the Bank of Namibia (BoN).
The bulk of this inflow was driven by heightened oil exploration activities in the Orange Basin, where several global energy players expanded operations or entered the market.
BoN stated that the spike in equity injections was largely linked to oil companies ramping up their presence in the basin, noting that “new operators came on board,” contributing to the overall FDI momentum.
The country’s services account, however, saw net outflows rise by about N$4.6 billion (US$239 million) to N$6.8 billion (US$353 million), mainly from increased payments for business services related to oil and gas activity.
Drilling activity drives confidence
One of the major developments in Q4 was the arrival of the Noble Venturer drillship in Walvis Bay.
The vessel kicked off a drilling campaign for Rhino Resources on Block PEL-85, targeting the Volans-1 and Sagittarius-1 prospects.
The operation, backed by an Environmental Clearance Certificate from Namibia’s Ministry of Environment, is expected to last over 100 days and inject around N$1.8 billion (US$94 million) into the economy.
Communities in Walvis Bay and Lüderitz are among the key beneficiaries of this campaign.
Meanwhile, ReconAfrica completed drilling the Naingopo well in PEL 73, reaching a depth of 4,184 meters well beyond its original 3,800 meter target. The firm is now analyzing data to determine the well’s commercial potential.
Harmattan Energy, a Chevron subsidiary, also drilled the Kapana 1-X exploration well in PEL 90.
Although the well didn’t yield commercially viable hydrocarbons, BoN noted that the geological data gathered “strengthened confidence” for further activity in the license area.
Majors make strategic moves
For instance, Portuguese energy firm Galp Energia invested nearly N$6 billion (US$312 million) in Namibia in 2024 alone.
Most of this went into exploration and appraisal in PEL 83, a 10,000 km² license area in the Orange Basin near South Africa.
The company’s total capital expenditure for the year stood at €1.29 billion, with Namibia being a key focus alongside Brazil and low carbon projects.
TotalEnergies, which is currently leading development efforts around the giant Venus discovery, intensified its offshore operations as well.
In October 2024, it began drilling the Tamboti-1X well in Block 2913B using the DeepSea Mira rig.
By November, it had increased its stakes in Blocks 2912 and 2913B through acquisitions from Impact Oil & Gas, positioning itself to lead a possible full-field development.
However, a final investment decision (FID) on Venus is now expected in 2026, not 2025 as earlier anticipated.
