Market Watch

Namibia receives N$26.6m from BW Energy in 2025

10 hours ago - 2026-03-04 15:59:35

Namibia received approximately US$1.4 million (about N$26.6 million) from BW Energy in 2025, according to the company’s payments-to-governments disclosure.

The report, published by BW Energy, details the payments the company made to state institutions in each country where it operates.

Of the US$1.4 million paid in Namibia during the 2025 financial year, US$0.7 million (approximately N$13.3 million) was paid to the Tax Administration and related authorities.

This amount does not represent petroleum profit tax from oil production, as Namibia does not yet have commercial offshore output under BW Energy.

Instead, it likely reflects corporate income tax on local operations, payroll-related obligations, withholding taxes and other statutory payments associated with exploration activity.

A further US$0.6 million (approximately N$11.4 million) was paid to the Ministry of Mines and Energy. Within that amount, US$0.4 million (about N$7.6 million) is recorded under royalties, while US$0.2 million (around N$3.8 million) falls under “other” payments.

Under Namibia’s Petroleum (Exploration and Production) Act, royalties are generally calculated as a percentage of produced petroleum.

Although Namibia has not yet entered full commercial production under BW Energy, limited volumes produced during well testing or appraisal activities can trigger royalty obligations.

In some cases, company reporting classifications may also group certain licence-related payments under royalty categories.

An additional US$0.1 million (approximately N$1.9 million) was paid to the Petroleum Training and Education Fund. PETROFUND finances scholarships and technical training for Namibians entering the oil and gas sector, with contributions typically embedded in licence conditions.

Globally, BW Energy reported total payments to governments of US$298.1 million (around N$5.66 billion) in 2025, with the bulk directed to Gabon, where it has producing assets. Namibia’s share represents less than 0.5% of that total.