Namibia Abruptly Cancels Major Oil and Gas Infrastructure Project
The Namibian Ports Authority has suddenly cancelled a pre-qualification tender for a crucial new oil and gas supply base at Luderitz port, dealing a significant blow to the country’s ambitions to become a major energy hub. The cancellation came just days after the tender was launched, with no explanation provided.
The cancelled project involved a concession to design, build, own, operate and transfer a new Luderitz Bay oil and gas supply base to support drilling campaigns in the Orange Basin. This facility was considered essential for supporting the burgeoning offshore oil and gas sector following major discoveries by Shell, TotalEnergies, Galp and Rhino Resources.
Namibia has positioned itself as an exploration hotspot with ambitions to deliver first oil by 2030, designating Luderitz as the country’s energy hub. However, regulatory uncertainty, lack of key infrastructure, and an unskilled labor force for the oil and gas sector have increasingly worried investors and operators.
The port authority’s CEO Andrew Kanime has not responded to requests for clarification about the sudden cancellation. Luderitz port, located in the far south of the country, remains crucial for the energy sector, with TotalEnergies operations currently supported from the facility, while Shell and Galp operations are backed by Walvis Bay to the north.
The port still has separate plans to extend its quay wall by at least 300 meters to accommodate more platform support vessels servicing the offshore sector.
Source: reuters.com
