How Namibia Pulled Ahead In Africa’s Hottest Offshore Oil Basin
Tanker Traffic Remains Subdued Despite Trump’s Talk of Peace Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.
Namibia is rapidly emerging as Africa’s next major oil producer while neighboring South Africa, which controls roughly two-thirds of the same Orange Basin petroleum province, remains years behind in developing essentially the same petroleum system.The Orange Basin, an offshore deepwater petroleum province spanning the Atlantic maritime border between the two countries, is estimated to contain more than 20 billion barrels of oil equivalent.
Yet while Namibia has attracted a succession of world-class discoveries and moved rapidly toward commercial development, South Africa has struggled to translate the same geological opportunity into producing assets.TotalEnergies' (NYSE:TTE) deepwaterVenus Projectin offshore Namibia now targets an initial production capacity of roughly 150,000 barrels of oil per day, with first oil aimed for 2030.
Venus-1X is estimated to contain 1.5 billion barrels of light crude and 4.8 trillion cubic feet of gas.
TotalEnergies has also taken over operations of the massive Mopane discovery from Portugal’s Galp Energia (OTCPK:GLPEF).
Last month, Shell Plc (NYSE:SHEL) and its JV partners reported a major oil discovery at theMerlin-1X exploration wellwithin Petroleum Exploration Licence 39 (PEL 39).
Located in Namibia’s Orange Basin roughly 290 kilometers off the coast, the resource has recoverable reserves estimated at 750 million barrels for Phase 1.
The success of Merlin-1X marks a critical turnaround for the consortium.
In early 2025, Shell booked a$400 million impairmenton its Namibian offshore portfolio following engineering hurdles at older discovery wells with complex geology and high gas-to-oil ratios, including Graff-1X and Jonker-1X.
Those challenges had initially slowed commercialization plans, but the Merlin-1X discovery has significantly improved theoutlookfor the company’s Namibian acreage.
Related: Harold Hamm Bets Bigger on Argentina’s Vaca Muerta Shale Boom In contrast, South Africa has made little progress here, despite owning two-thirds of the basin.
South Africa’s largest undeveloped offshore gasLocated in Oranger Basin’s Block 2A, theIbhubesi Gas Fieldis South Africa’s largest undeveloped offshore gas field, holding an estimated 540 billion cubic feet of natural gas and 4.3 million barrels of condensate.
| 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% |
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