Namibia Launches Sovereign Wealth Fund after Offshore Oil Finds Made by TotalEnergies, Shell

May 12, 2022

TotalEnergies used Maersk Drilling's Maersk Voyager drillship for the successful Venus-1x well offshore Namibia - Credit: Maersk Drilling
TotalEnergies used Maersk Drilling's Maersk Voyager drillship for the successful Venus-1x well offshore Namibia - Credit: Maersk Drilling

Namibia on Thursday launched a sovereign wealth fund, months after oil discoveries by TotalEnergies and Shell off its coast.

President Hage Geingob said at the launch the Welwitschia Fund would get an initial injection of 262 million Namibian dollars ($16.15 million) and invest 2.5% of its portfolio locally to bridge the country's infrastructure financing gap.

The fund will collect some of the royalties from all mineral resources sold as well as some tax revenues and money raised by the government divesting from its investment holdings.

"We are looking forward to the prospects and opportunities that will emanate from the recent discoveries of oil and the green hydrogen energy, which have the potential to further boost the fund's capital," Geingob said.

Other resource-rich African countries that have sovereign funds include Angola, Botswana, Libya, and Nigeria.

TotalEnergies said in February its Venus prospect offshore Namibia had found a good quality reservoir, which one source told Reuters was more than 1 billion barrels of oil equivalent. That find was the second major discovery in a month after Shell also announced a significant find.  

Known for its gem-quality diamonds, gold, and uranium, Namibia has considered creating a sovereign fund since 2009.

It is aiming to become a green hydrogen player by 2026 and has selected a preferred bidder for a multi-billion dollar project.

($1 = 16.2180 Namibian dollars)

(Reporting by Nyasha Nyaungwa, Editing by Alexander Winning and Angus MacSwan)




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