China Tightens Its Grip on Namibia's Next Energy Boom
China Tightens Its Grip on Namibia's Next Energy Boom What I Cover Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and… China isn't waiting for Namibia to become an oil producer.
During a state visit to Beijing this week, Namibia and China signed eight cooperation agreements covering energy, critical minerals, infrastructure, agriculture, and economic development, as China attempts to secure a front-row seat to what could become Africa's next major energy story.
Namibia's first female president, Netumbo Nandi-Ndaitwah, spent the week courting investment as her government looks to diversify an economy still grappling with high unemployment.
China, meanwhile, appears perfectly happy to help, as long as it comes with access to the country's growing list of strategic resources.
Shell and TotalEnergies have already discovered anestimated 2.6 billionbarrels of crude offshore Namibia, with production expected to begin before the end of this decade.
If development stays on track, Namibia could become Africa's fourth-largest oil producer by 2030.
The two countries also agreed to deepen cooperation on uranium, lithium, and rare earth elements.
These minerals are just as strategically valuable as crude oil.
The agreement also emphasizes local processing and technology transfer, which is a growing trend among African resource producers that are increasingly reluctant to simply ship raw materials overseas.
According to data cited by Reuters, Chinese companies have invested roughly $4.2 billion in Namibia so far, with nearly all of it flowing into the country's metals sector.
China also buys about a quarter of Namibia's exports, and uranium alone accounts for roughly 85% of those shipments.
Securing access to Namibia's future oil production and strengthening its hold on critical minerals is a logical extension of China’s long-running Africa strategy.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment