Six months ago, Canadian oil and gas company
In April, ReconAfrica released exciting preliminary data from its exploratory wells that confirmed an active petroleum system. According to Petro Online, "Analysts estimate the company could generate 120 billion barrels of petroleum on just 12% of this footprint, potentially outperforming the oil-rich
The giant onshore reserves of conventional oil and gas means that normal production processes wouldn’t require fracking or substantial water requirements – resulting in low per-barrel cost.
Since then, ReconAfrica has signed a petroleum agreement with the Namibian state oil company NAMCOR. ReconAfrica now owns a 90% interest in the
For a region that has never produced a barrel, these developments could be huge, not only for RenconAfrica, but more importantly, for Namibia’s people. Exploration and production activities will open the door to thousands of well-paying jobs for Namibians, not to mention the opportunities for building local capacity and technology sharing that come with the presence of international oil companies.
ReconAfrica’s success can help fight energy poverty through gas-to-power programs and set
Additionally, as an Oilprice.com commentary points out, "The size of the potential upside for ReconAfrica, combined with the speed the company is executing its exploration program, means that this is not likely a scenario where investors are forced to wait for a potential payoff five years or more into the future. Positive drilling results could trigger an increase in share value – or potential partnership and acquisition news – at some point in 2021, probably making this a rare short-term opportunity with significant upside potential."
But Green NGOs Say ‘No, No, No!’
The environment has not been an afterthought for ReconAfrica or the Namibian government when it comes to this project. Government agencies performed environmental impact assessments before approving it, as required by law, and ReconAfrica has conducted numerous studies itself.
Despite this, environmental advocacy groups and non-governmental organizations (NGOs) have already started condemning Namibia’s decision to allow ReconAfrica to move forward with exploration and production activities. No one loves the environment more than the Namibian authorities and ReconAfrica.
This isn’t a surprise, but it is troubling.
We’ve seen a continual pattern of environmental groups putting the muscle on international organizations and private investors to "encourage" them to drop support for African fossil fuel production – including activity in
The thing is, their campaign to save
Namibia’s leadership recognizes the
"This is a great period for the people of
I believe that environmental campaigns like the one we’re seeing in
This also makes it a prime target for international environmental enterprises.
And this is the case in
ReconAfrica is following all Namibian regulations and international best practices, avowing, "ReconAfrica will ensure that there is no environmental impact from these wells. Specific steps are taken that are part of our plans and verified by environmental auditors and technical specialists." We must continue to support good practices like the ones being carried out.
In addition, green advocates argue that oil and gas exploration and production in
Don’t get me wrong: I believe in the science of climate change. I believe that we all must take it seriously. But I don’t believe that Western influencers know the best path forward for
If anything, these efforts feel like just one more example that African voices don’t matter.
The Namibian government must not cave into these external pressures. If anything, they must double down on their efforts to establish the groundwork for sustained growth. They must question why these NGOs aren’t considering the views of the government, the people in
RenconAfrica’s Kavango efforts hold so much potential. We can’t afford to shutter their progress. It’s inhumane to continue to hold people down, especially when the people themselves have the ability to bring about meaningful changes. Environmental principles are important, but not when they sacrifice human dignity.
NJ Ayuk is Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate
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