Windhoek – The recent discovery of oil in Namibia is a game changer and should be managed well in order to avoid the pitfalls that have befallen other countries, an energy expert said on Thursday.
Fannon Global Advisors managing director Frank Fannon said the recent discovery of oil at Shell’s Graff-1 project “confirms to the global industry that Namibia has the resources to attract the world’s best and brightest”.
Shell announced last month that it had discovered oil at its Graff-1 exploration well off the Namibian coast.
“This discovery is a game changer for the country – Namibia’s first oil discovery,” Fannon told the African Energy Chamber.
However, he cautioned Namibian authorities “to stay on a disciplined path” by avoiding making political decisions that would jeopardise the prospects of a successful oil industry with the capacity to significantly transform the country’s economy.
“With a discovery of this potential significance, there are often political voices that would like to start spending money and accelerate timelines, or cut corners to meet political rather than business cycles. I would encourage the country to stay on a disciplined path,” he said.
The Windhoek authorities should learn from the successes and failures of those countries that have discovered oil before Namibia, he said.
The discovery of oil and gas has previously been accompanied by armed conflicts in parts of Africa and the Middle East, with allegations that communities near the discoveries were sidelined during implementation of the projects.
APA