Economist Urges Namibia to Prioritize Gas Development
Economist Robin Sherbourne has advocated for Namibia to emphasize gas development over oil, arguing it offers superior potential for local employment and economic benefits. Speaking about BW Energy’s Kudu gas project, Sherbourne noted that while oil generates significant government revenue, it creates limited direct jobs compared to gas development’s transformative potential for sustainable onshore employment.
Industry projections indicate Namibia’s first phase offshore oil projects, representing $15 billion investment, will generate approximately 600 direct jobs. However, most skilled positions on floating production storage and offloading units (FPSOs) and shuttle tankers will require international staff initially.
Sherbourne cautioned that while oil royalties begin immediately upon production, substantial tax revenues will take years to materialize. The government will receive 1.5% to 5% royalties from first oil, but main revenue from 35% petroleum income tax only comes after recovering the initial $15 billion investment and exploration costs, projected around 2035.
Source: angolanminingoilandgas.com
