Namibia’s oil sector has experienced remarkable growth since 2022, attracting increasing interest from numerous international companies. Among these potential players is Woodside Energy, an Australian firm already active in Africa through oil operations in Senegal.
In a report published on November 21, 2024, by Pancontinental Energy, operator of the PEL 87 permit off Namibia’s coast, it was revealed that Woodside Energy has access to 3D seismic data of the area. This development follows authorization from Namibian authorities for conducting survey campaigns covering 6,593 km².
In March 2023, Woodside Energy signed an agreement with Pancontinental Energy, granting it the right to acquire a 56% stake in the PEL 87 permit. However, this option remains conditional on several requirements, including funding the 3D seismic study and a $1.5 million payment to Pancontinental. Woodside has until May 18, 2025, to decide on its involvement in this project.
Growing interest in Namibia’s offshore sector
The approval from Namibian authorities marks a strategic step for Pancontinental and its partners, Custos Investments (15%) and NAMCOR (10%). If Woodside exercises its option, it would become the primary operator of PEL 87, thereby strengthening its presence in Southern Africa.
Namibia’s offshore region has drawn the attention of major international oil players due to significant discoveries in recent years. Preliminary analyses suggest substantial potential, which could position Namibia as a key energy player in Africa.
Implications for the local economy
For Namibia, Woodside’s involvement could bring substantial economic benefits through investments, job creation, and technology transfers. However, this growth is taking place in a context where the country seeks to balance its oil ambitions with its climate commitments and renewable energy development.
Currently, Namibia’s heavy reliance on energy imports poses a significant challenge for its economy. Diversifying energy sources through projects like PEL 87 could help reduce this dependency and enhance the country’s energy autonomy.
