Key warning: Don’t treat associated gas as an afterthought
Namibia stands at a pivotal moment for its offshore energy sector. As oil discoveries in offshore waters promisingly emerge, industry leaders are emphasizing a message that cannot be overlooked: associated gas must be planned for early, not retrofitted as volumes grow. Tom Alweendo, CEO of Alvenco Advisory, has underscored the risk of waiting until late stages to address gas handling, processing, and monetization. The goal is clear—integrate gas planning into the broader field development strategy from the outset to maximize value, reduce costs, and support sustainable growth.
Why early gas planning matters offshore
Associated gas—gas that is produced together with oil—can either become a valuable revenue stream or a costly liability if neglected. Offshore Namibia offers significant potential, but without proactive planning, operators may face bottlenecks in export capacity, processing facilities, and market access. Early gas planning helps in several ways:
- Identifying suitable gas use options (domestic power, LNG, pipeline sales) and aligning them with field economics.
- Ensuring infrastructure is scaled to production profiles, avoiding expensive retrofits later.
- Streamlining permitting, environmental impact assessments, and community engagement for gas projects.
- Attracting investment by presenting a clear, integrated plan for both oil and gas returns.
Balancing oil and gas economics in offshore Namibia
Oil discoveries typically capture headlines, but the associated gas can dramatically shift a project’s viability. Namibia’s policymakers, industry players, and potential sponsors are paying attention to how gas will be managed across the lifecycle—from exploration and appraisal through development and eventual decommissioning. A well-structured gas strategy can help secure fiscal certainty and unlock additional value streams, such as on-site power supply for platforms, gas-to-power projects for nearby communities, or export via pipelines or LNG facilities.
Strategic steps for robust gas planning
Experts suggest a practical roadmap for Namibia’s offshore gas planning, with collaboration among government, oil companies, and financial partners:
- Define a gas concepts study early: Evaluate potential gas utilization options, contractual structures, and market timing to inform field development plans.
- Assess infrastructure needs: co-locate gas processing, gas reinjection, or power-generation facilities with oil infrastructure to optimize economics.
- Engage stakeholders: Build consensus with regulators, local communities, and potential buyers to reduce delays and secure social licenses to operate.
- Plan for monetization: Consider LNG, pipeline gas, or direct use schemes to diversify revenue streams and mitigate price risks.
- Incorporate risk management and funding: Establish predictable cost curves, long-term supply agreements, and funding mechanisms to attract investors.
Policy and industry alignment
National energy policy plays a crucial role in turning gas potential into tangible assets. Authorities can support early gas planning through clear regulatory pathways, transparent fiscal terms, and incentives for integrated oil-and-gas developments. The Namibian experience could set a regional benchmark, encouraging neighboring nations to pursue similar coordinated approaches that maximize local value while maintaining environmental and social safeguards.
Looking ahead
As offshore oil discoveries reveal promising prospects, the emphasis on gas planning grows stronger. Tom Alweendo’s call to action—treat associated gas as a strategic asset rather than an afterthought—reflects a broader industry trend toward integrated development. If Namibia embraces proactive gas planning now, the country can accelerate monetization, optimize infrastructure investment, and position itself as a forward-thinking energy hub in southern Africa.
