Nabirm’s focus on exploration efforts in Namibia is not based solely on its highly prospective geology, but also for the favourable political and business climate. Namibia can be characterized as follows:
- Stable democracy
- Resource economy
- Low corruption – rank: 58/176
- BBB risk rating
- 2.3 million people
- Gross Domestic Product (GDP) of US$12.2 (2010)
- 5% royalty + 35% corporate tax
- Literacy rate of 88.5%
- Only 16 wells drilled in <20 years
- Billions of barrels of oil and gas resources
Namibia has been an active oil and gas exploration area since the 1960s. Initial exploration efforts were driven by large multinational companies and the first hydrocarbon discovery was the Kudu Gas Field by Chevron in 1974 (Kudu Field has proven resource of 1.45 TCF). Currently, Namibia has generated significant regional activity with multiple majors and large independents securing acreage. This includes BP, Petrobras, Tullow, Repsol, Galp, and HRT.
There have been eight wells drilled in or near the Walvis Basin and the initial results show the potential for a large discovery. A recent well drilled by HRT in March 2013 identified two well-developed source rocks rich in organic carbon within oil-generating window. The four collected 450cc samples and analysis indicates the presence of light oil of 38-42 degree API, with minimal contamination. In July 2011, the Namibian Ministry of Mines & Energy announced an estimated 11 billion barrels in oil reserves were found off Namibia’s coast, with the first production planned within four years. The finding could put Namibia on par with neighboring Angola, whose reserves are estimated at around 13 billion barrels and whose production rivals Africa’s top producer Nigeria.