Discoveries off Africa have dwindled in recent years as exploration all but ground to a halt, with just a single rig operating in 2020 as the Covid-19 pandemic took hold. Environmental groups are calling for an end of fossil fuel development and taking legal measures to block it.Namibia’s nascent oil industry sees a window of 10 years to get going before the move towards net-zero emissions makes it too late to develop further discoveries.
Discoveries off Africa have dwindled in recent years as exploration all but ground to a halt, with just a single rig operating in 2020 as the Covid-19 pandemic took hold. Environmental groups are calling for an end of fossil fuel development and taking legal measures to block it. The oil and gas industry is known for lengthy developments, particularly in areas that don’t have established infrastructure. In Uganda, development of major oil reserves first discovered in 2006 has only just started and the crude won’t reach international markets until 2025. In Mozambique and Tanzania, large offshore gas fields found about 10 years ago still face an uncertain future.
Shell and TotalEnergies have yet to confirm whether their offshore fields are large enough to warrant commercial development. Such projects can’t be rushed in just two or three years, said Dennis Zekveld, Namibia country chairman for Shell.