Namibia to licence production near Okavango Delta if Canadian firm finds oil

Alma Metals

10/11/2021 11:23

By Wendell Roelf
    CAPE TOWN, Nov 10 (Reuters) - Namibia intends to award a
25-year production licence to Canada's ReconAfrica if it finds
oil near the Okavango Delta, Energy Minister Tom Alweendo said,
despite concerns it could affect the region's rich biodiversity.
    Alweendo's comments come amid opposition to the project in
the Kavango Basin where drilling is taking place some 260 km
away from the pristine Okavango Delta, a UNESCO World Heritage
site shared by Botswana and Namibia, whose waters drain into the
desert sands of the Kalahari.
    In April, ReconAfrica said initial drilling had confirmed an
active petroleum system on Namibia's side. However, UNESCO's
World Heritage Committee warned against granting of exploration
licences in Botswana and Namibia.
    "What is the point of me allowing somebody to drill and then
turn around and say we are not going to give you a production
licence?" Alweendo told Reuters on Tuesday on the sidelines of
an African energy conference in Cape Town.
    "Obviously, we intend to give the production licence if they
found the oil," he said, adding that the firm needed to follow
the requisite environmental laws. 
    ReconAfrica did not immediately respond to questions sent on
Tuesday and Wednesday. It has said previously it will adhere
strictly to regulations, with no drilling in environmentally
sensitive areas and a commitment to protect local ecosystems.
    The Okavango Delta is one of the very few major river delta
areas that does not flow into a sea. It is fed by the annual
flooding of the Okavango river, making the wetland an important
dispersal route for elephant and other wildlife.
    While acknowledging the licensed territory was outside the
area and its buffer zone, UNESCO raised concern about any
potential spills or pollution. The Kavango East and West
Regional Conservancy and Community Forestry Association has also
asked for more consultation with local communities.
    ReconAfrica, a junior oil and gas explorer, holds licences
for around 8.5 million contiguous acres to explore for oil and
gas in the northeast of Namibia as well as neighbouring
Botswana.


 (Reporting by wendell Roelf in Cape Town; Additional reporting
by Nyasha Nyaungwa in Windhoek; Editing by Promit Mukherjee and
Alison Williams)
 ((wendell.roelf@thomsonreuters.com; +27 21 461 3523;))