Petro Rio S.A. ADR fka HRPTY

[ModestKat]

'Oil must benefit all'

My apologies if this article has already been posted - ModestKat

Wed, 2013-05-22 09:39



Yesterday's announcement that oil has been found off the coast of Namibia has prompted analysts to caution that measures should be put in place to ensure that any new-found wealth in the sector should benefit ordinary citizens.

Brazilian petroleum company HRT yesterday announced that oil has been discovered off Walvis Bay after a 60-day drilling operation which cost N$810 million.

Although no commercial volumes were found, HRT President Joe Paul said source rocks rich in organic carbon, which can generate oil or gas, were discovered at the Wingat drilling well.
Paul said three more wells needed to be drilled, with their next exploration, known as the Murombe Prospect, expected to start within 15 days.

Drilling will commence 15km west of Wingat, to test a basin floor.
Executive Director of the Institute of Public Policy and Research (IPPR), Graham Hopwood, said as optimism grows, it is vital that Namibia starts to consider how the wealth from oil and other natural resources can be managed to the benefit of the people.
Hopwood said Namibia should replicate the approaches of countries like Norway and Ghana, to ensure the majority of the population receives development benefits, rather than just an elite few.
Hopwood added that Namibia should introduce strong anti-corruption measures, aimed at preventing oil wealth from being siphoned off. It should also create independent multi-stakeholder monitoring bodies.

He said the country should also join the global Extractive Industries Transparency Initiative (EITI) through which all payments relating to natural resource development and extraction are disclosed publicly.

The creation of a sovereign wealth fund will channel oil revenues into long-term poverty reduction programmes and developing other parts of the economy, such as agriculture and tourism.
These measures can be planned in advance of any discovery of commercial oil deposits and will serve the minerals sector well, even if oil is not found, Hopwood said.

Social commentator Uazuva Kaumbi said the country should not develop a dependence on oil, but should diversify the economy. He added that caution must be exercised because fossil fuels are slowly being phased out, due to their negative impacts on environment.

Green energy is the new religion. However, in general, the discovery of oil brings with it the potential for a major socio-economic lift for our people. The natural environment will come under pressure, due to the pollution that goes with oil extraction and processing

Hopefully, there will be a resource dividend for our country so that major investments can be made in mass housing, free education and free health services, Kaumbi said.
Kaumbi reiterated that the history of oil shows there are many 'sharks' that enter the industry, to exploit the resource for their own greedy purposes.

Oil-hungry imperialist countries like the United States of America usually benefit from a chaotic political situation in an oil-rich country, so that they can manipulate the payment of taxes and other royalties. Namibia can learn from such countries and position itself strategically so as not to repeat this negative behavior, he said.

http://www.namibiansun.com/energy/oil-must-benefit-all.53017