Namibia Delays Oil-Port Upgrade Plan Amid Confusion Over Project Scope

Namibia's plans to upgrade its southern harbor for oil and gas development have been delayed due to confusion around the scope of the project. The port authority halted the process of selecting contractors to build an oil- and gas supply base, citing the need to clarify information about the work. The upgrades are crucial for Namibia to meet its goal of producing hydrocarbons within the next five years.

Namibia's plans to upgrade its southern harbor for oil and gas development have been delayed due to confusion around the scope of the project. The Namibian Ports Authority (Namport) has halted the process of selecting contractors to build an oil and gas supply base, citing the need to clarify information about the work. The upgrades are crucial for Namibia to meet its goal of producing hydrocarbons within the next five years.

The cancellation of the pre-qualification tender for a new oil and gas supply base at Luderitz, announced on August 15, 2023, is a significant setback for the country's energy ambitions. The tender, launched just days prior, aimed to support drilling campaigns in the Orange Basin, a key exploration hotspot [1]. The sudden cancellation, without explanation, has raised concerns about regulatory uncertainty and the lack of key infrastructure in the sector.

Namport's decision to halt the project comes amidst a backdrop of significant offshore discoveries, including Shell's Graff discovery, which transformed the fortunes of the Namibian offshore in 2022 [2]. However, Shell's recent write-down of $400 million on its Orange Basin oil discoveries has dented investor optimism. Shell has since announced plans to resume exploration efforts in the basin in 2026, but the company has not provided details on potential exploration efforts [2].

The cancellation of the tender is a blow to Namibia's efforts to accelerate development at Luderitz port, which is designated as the country's energy hub. The port, located to the far south of Namibia, has separate plans to extend its quay wall to accommodate more platform support vessels. However, berthing capacity at the physically constrained port is already close to full capacity, with fishing and mining cargoes vying for space [1].

The delays in upgrading the port could hinder Namibia's timeline to first oil by 2030, a goal that the government considers transformational for the country's small economy. Despite the challenges, Namibia's government remains optimistic about the potential of its offshore resources, estimating over 11 billion barrels of oil equivalent in potential resources [2].

References:
[1] https://www.reuters.com/business/energy/namibian-ports-authority-cancels-key-luderitz-energy-support-project-2025-08-15/
[2] https://www.hellenicshippingnews.com/shell-to-resume-oil-exploration-off-namibia-in-2026-after-write-down/