TIRI MASAWI
Namibia could gain up to N$800 billion in Gross Domestic Product (GDP) over 25 years from the planned Venus Offshore oil project, a new Environmental and Social Impact Assessment (EISA) reveals. The project could also generate thousands of jobs and substantial government revenue, though drilling may extend to 35 years.
“The project is estimated to contribute between N$536 billion and N$800 billion to Namibia’s GDP for the anticipated minimum 25-year project lifetime,” the assessment states.
The report adds that the government could collect N$127 billion to N$229 billion in revenue through taxes, levies, and other direct or indirect payments over the same period.
The project is operated by TotalEnergies EP Namibia in partnership with QatarEnergy, Namcor, and Impact Oil & Gas, covering Block 2913B, located approximately 300 kilometres off the Lüderitz coast.
The assessment highlights that the value of oil exports will depend on global oil prices and production volumes.
“The total oil export value is estimated at N$593 billion to N$888 billion for the anticipated minimum 25-year project lifetime. The project pays money to the government through taxes, levies and other direct or indirect payments. Revenues from oil production are expected to contribute as much as 8% to 14% of total government revenue at peak, and 2% to 5% throughout most of the project lifetime,” the report says.
JOBS AND ECONOMIC CONTRIBUTION
The Venus project is expected to create about 7 000 sustainable and part-time jobs, spanning the pre-production and production phases.
“The project creates demand for skilled people who can work in the oil and gas industry and other industries. The joint venture is already committed to upskilling Namibians, which will continue during all project phases,” the EISA says.
According to the assessment, the project will stimulate economic activity through procurement of goods and services in Namibia. “Based on conservative assumptions, the project will contribute between 13% to 18% of GDP in early high-production years, and 2% to 7% in later years when production is lower,” the report adds.
Drilling and installation are expected to generate about 5 000 jobs. At least 500 are direct jobs while 2 000 are indirect, and 2 500 are spillover jobs. During production, an estimated 7 000 jobs are expected with 600 of those being direct, 600 indirect, and 5 800 spillover jobs.
IMPACT ON FISHING
The assessment notes that the project will have minimal impact on agriculture and fishing.
“Fishing and agriculture cannot take place within project safety zones. However, the overlap between safety zones and active fishing and mariculture areas in the offshore and nearshore areas is very limited. The expected impact on livelihoods associated with those fisheries is thus also very limited,” the assessment says.
Fishermen and vessels may need to adjust their normal routes to avoid safety zones, but the overall effect on local livelihoods is expected to be limited according to the assessment.
NOISE POLLUTION
Environmental impacts from drilling and vessel operations are expected to be low and manageable.
“Underwater noise from drilling and vessel operations is not expected to reach levels that cause behavioural disturbance, and lighting impacts are limited to the immediate vicinity of vessels and equipment,” the EISA states.
The report adds that turtles are unlikely to be affected, as the project area is far from nesting beaches in Angola and South Africa. Seabirds may change their behaviour temporarily if exposed to helicopter noise or artificial lighting near breeding colonies. Marine mammals may experience short-term hearing effects, but these are expected to be localized and temporary.
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