Oil sector readiness faces fresh test
The Namibian Petroleum Operators Association (NAMPOA) has invited consultants to undertake a second Industry Baseline Study (IBS 2.0), updating the 2024 assessment of the country's readiness for an oil and gas industry.
The first study, conducted by Deloitte Namibia, provided an early snapshot of domestic capacity before the country's offshore petroleum discoveries had progressed to final investment decisions. Its economic projections were therefore modelled scenarios, not actual industry outcomes.
Interest is high, readiness is patchier
Of the 254 suppliers surveyed in the original assessment, 80% expressed a clear interest in participating in the oil and gas industry.
But interest did not necessarily translate into readiness. Many businesses lacked information about project requirements, procurement timelines and the standards expected by contractors.
Their biggest concern was payment delays, followed by administrative approvals and bureaucracy, shortages of skilled Namibian workers and inadequate infrastructure.
Health, safety, security and environmental (HSSE) compliance was another weakness. While 82% of surveyed suppliers had some HSSE elements in place, only 14% conducted annual reporting.
There were opportunities, too. Deloitte identified 13 supply chains with relatively limited gaps, offering potential quick wins for local businesses. Another nine had moderate to significant gaps but could offer substantial opportunities if supported by targeted investment.
The skills puzzle
The workforce findings were equally revealing.
Deloitte identified 218 job types that would be required by the petroleum industry. Of these, 143 were available in Namibia, leaving 75 without a local match.
The gaps were concentrated largely in specialised technical occupations, highlighting the need for more targeted training and industry-specific qualifications.
Petroleum engineering was among the qualifications identified as unavailable locally.
What could the money mean?
The 2024 study modelled two development scenarios involving one and four floating production, storage and offloading vessels (FPSOs).
Under the one-FPSO scenario, the model estimated a potential GDP impact equivalent to 5.8% of the baseline during the production phase, alongside approximately 7,000 jobs.
Under the four-FPSO scenario, the estimated GDP impact rose to 21.3%.
The employment figures need some context.
Of the 7,000 jobs projected during production in the one-FPSO scenario, only 600 were classified as direct employment. Another 600 were indirect jobs, while 5,800 were induced jobs expected to emerge as economic activity spreads into sectors such as retail, transport and other services.
In other words, the wider economic benefits could extend well beyond the companies extracting oil.
Deloitte emphasised that the estimates were indicative and dependent on the assumptions underpinning the hypothetical development scenarios. They were not forecasts of confirmed projects or guaranteed employment.
What IBS 2.0 will examine
The second study will cover all 14 regions and the full upstream petroleum project lifecycle, from exploration and appraisal to development, production and decommissioning.
It will map suppliers across three tiers, assess their competitiveness and identify goods and services that could realistically be sourced locally over the next one to three years and three to seven years.
The workforce assessment will identify existing skills, forecast future labour requirements and develop an upstream petroleum human resource skills development plan.
It will also establish measurable indicators of local participation, including workforce man-hours, full-time equivalent employment and domestic supply-chain expenditure.
There is another important question the study wants to answer: how much continuous industry activity will be needed to sustain local businesses and retain specialised skills?
Developing a supplier base requires more than preparing companies for individual contracts. Businesses need a sufficiently predictable pipeline of projects to justify investment, retain skilled employees and remain competitive.
NAMPOA is undertaking the exercise in collaboration with the Upstream Petroleum Unit, the National Petroleum Corporation of Namibia (NAMCOR), the Petroleum Training and Education Fund (PETROFUND) and the Contractors Oil and Gas Association of Namibia (COGANAM).
How to apply
Expressions of interest must be submitted in PDF format to info@nampoa.org by 13 November 2026, with the subject line "EOI_IBS_2.0 – [Respondent Name]".
No pricing is required at this stage. Shortlisted applicants will be invited to participate in a subsequent tender process.
