By LÜDERITZ, Namibia – A land access dispute in Namibia over diamond-rich areas around the town of Lüderitz is threatening to derail major energy projects. The conflict involves state and company officials as the government steps up efforts to resolve the issue, according to Reuters reports.
Any prolonged delays may deter investors at a critical time for Namibia, which is working to accelerate its first oil production following large offshore finds by TotalEnergies, Shell, and Galp. The energy sector is closely watching these developments as Namibia positions itself as a future energy hub.
The disputed area includes vast tracts of desert land surrounding Lüderitz and Elizabeth Bay, located 25 km south. This land is part of a mining license held by Sperrgebiet Diamond Mining (SDM) company, crucial for companies needing access for their projects.
A spokesperson for the mines and energy ministry stated, “At the moment, the ministry and license holder are in talks to find a best solution to address the issue [of land access].” The dispute has the potential to impact several significant projects, including Hyphen Energy’s $10 billion green hydrogen project, a proposed 800-megawatt gas-to-power plant, and two wind farms.
BW Energy’s plans to develop a site in the Kudu gas field to supply a gas-to-power plant and an onshore liquefied natural gas facility are also affected. BW Energy CEO Carl Arnet emphasized the need for clarity, saying, “It’s quite important for us to secure the appropriate land once we are in operation.”
Elizabeth Bay has postponed a final investment decision on its Kudu project, citing the land issue. Officials aim to resolve the mechanics of how land will be accessed for energy infrastructure.
