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🇳🇦 Gas may dash Big Oil’s Namibian dreams

International companies and the government of Namibia had high hopes only months ago they could quickly cash in on offshore discoveries and turn the country they saw as the world’s last frontier of untapped oil into a prolific producer.

They have since hit a major complication: an unexpectedly high percentage of gas in the fields, meaning they need to install additional infrastructure. That will slow development and may make projects unprofitable, according to executives, politicians and industry sources.

International companies and the government of Namibia had high hopes only months ago they could quickly cash in on offshore discoveries and turn the country they saw as the world’s last frontier of untapped oil into a prolific producer.

Namibian law bans flaring–or burning gas off, releasing CO2 into the atmosphere–meaning companies will have to inject the gas back into the reservoir or process it for consumption, which Shino said was in any case the right thing to do.

After initially hoping for first oil by 2026, Namibia’s government is working with operators to agree on a single plan with common infrastructure for the 8.7 trillion cubic feet (tcf) of unexpected gas.

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