Emerging oil, gas industry ‘will bring transformation’
Beware the ‘resource curse’
At the opening of the Oil and Gas Conference yesterday, mines and energy minister Tom Alweendo cautioned that the emerging industry will bring not just opportunities but also challenges.
Namibia continues to emerge as a beacon for the future of global energy supply amid the turbulence of global geopolitics, mines and energy minister Tom Alweendo was quoted saying during the opening of the second annual Namibia Oil and Gas Conference in Windhoek yesterday.
Approximately 930 participants are attending the event – of which only 60% are Namibians – which is being held under the theme 'The Next Step Towards a Prosperous Oil and Gas Industry.'
According to deputy mines and energy minister Kornelia Shilunga, who delivered the keynote address on behalf of Alweendo, the conference aims to lay a foundation for effective resource management, local prosperity and meaningful participation, particularly given the national oil company Namcor’s stake in the industry.
Recent oil discoveries hold the promise of economic growth, but a repeated message has been the need to ensure that the returns are used in a way that benefits all Namibians.
“We are fully aware that the emerging petroleum industry will bring transformation – not just opportunities, but also challenges,” Shilunga said on behalf of Alweendo.
“There are many examples worldwide where oil and gas extraction has led to negative socio-economic and political impacts,” she added.
Clear rules
Therefore, the so-called resource curse should not be taken lightly, and lessons must be learned from the experiences of others, Shilunga said.
Clear national goals, effective stewardship, contributing to energy independence for the country, boosting industrialisation and job creation, and having the best strategies for exploration and utilisation of oil are essential, she stressed.
Equally important is preventing the impact of oil revenues on economic distortion, promoting local value addition, protecting the environment, and prioritising domestic processing of natural gas to facilitate upstream and downstream industries, she emphasised.
Active participation
Namcor and the port authority, Namport, should actively participate in developing shared infrastructure for oil and gas development while safeguarding the state’s interests.
“Oil and gas revenues must be managed in a way that improves the standard of living for both current and future generations of Namibians,” the deputy minister urged. “We expect international companies, both license holders and service providers, to play a critical role,” Shilunga added.
Also speaking at the event were co-hosts Jason Kasuto, chairperson of the Economic Association of Namibia, and Nangula Uaandja, head of the Namibian Investment Promotion and Development Board.
Kasuto encouraged the industry to make the value of oil extraction in Namibia visible to Namibians, while Uaandja emphasised strategic partnerships, local content, balancing economic growth with environmental conservation, and supporting Namibia’s development into a sustainable energy hub for Africa.
It was also confirmed that the conference is set to become an annual event.
Approximately 930 participants are attending the event – of which only 60% are Namibians – which is being held under the theme 'The Next Step Towards a Prosperous Oil and Gas Industry.'
According to deputy mines and energy minister Kornelia Shilunga, who delivered the keynote address on behalf of Alweendo, the conference aims to lay a foundation for effective resource management, local prosperity and meaningful participation, particularly given the national oil company Namcor’s stake in the industry.
Recent oil discoveries hold the promise of economic growth, but a repeated message has been the need to ensure that the returns are used in a way that benefits all Namibians.
“We are fully aware that the emerging petroleum industry will bring transformation – not just opportunities, but also challenges,” Shilunga said on behalf of Alweendo.
“There are many examples worldwide where oil and gas extraction has led to negative socio-economic and political impacts,” she added.
Clear rules
Therefore, the so-called resource curse should not be taken lightly, and lessons must be learned from the experiences of others, Shilunga said.
Clear national goals, effective stewardship, contributing to energy independence for the country, boosting industrialisation and job creation, and having the best strategies for exploration and utilisation of oil are essential, she stressed.
Equally important is preventing the impact of oil revenues on economic distortion, promoting local value addition, protecting the environment, and prioritising domestic processing of natural gas to facilitate upstream and downstream industries, she emphasised.
Active participation
Namcor and the port authority, Namport, should actively participate in developing shared infrastructure for oil and gas development while safeguarding the state’s interests.
“Oil and gas revenues must be managed in a way that improves the standard of living for both current and future generations of Namibians,” the deputy minister urged. “We expect international companies, both license holders and service providers, to play a critical role,” Shilunga added.
Also speaking at the event were co-hosts Jason Kasuto, chairperson of the Economic Association of Namibia, and Nangula Uaandja, head of the Namibian Investment Promotion and Development Board.
Kasuto encouraged the industry to make the value of oil extraction in Namibia visible to Namibians, while Uaandja emphasised strategic partnerships, local content, balancing economic growth with environmental conservation, and supporting Namibia’s development into a sustainable energy hub for Africa.
It was also confirmed that the conference is set to become an annual event.
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