CAPE TOWN, May 2 (Reuters) - Energy technology company

Baker Hughes ( BKR ) will construct a new liquid mud plant, and

a separate assembly, maintenance and repair base at Namibia's

Walvis Bay to cater to booming offshore exploration activities,

a senior executive said.

The project will help Namibia cope with an influx of drill

rigs and support vessels that threatens to overwhelm its only

two commercial ports, Walvis Bay and the smaller Luderitz, as

they battle congestion and inadequate facilities.

"It will be drilling fluids made in Namibia for Namibian

wells, an important step in building its oil and gas industry,"

Tokunbo Azeez, executive director Baker Hughes Sub-Saharan

Africa told Reuters of the country's first mud plant, expected

to open by September.

Liquid mud plants (LMP) are a vital cog in offshore

exploration work, producing, storing and delivering synthetic

oil-based "mud" and brines used during drilling to help prevent

dangerous blow-outs and friction.

Namibia, which has not yet produced any oil or gas, has

become an exploration hotspot after offshore discoveries by

TotalEnergies, Shell and more recently Galp

Energia.

Oil companies are importing drilling fluids from Angola and

can wait weeks for delivery, inflating costs and risk at their

operations, Azeez said.

At Luderitz, which the government has earmarked as an energy

hub, the national ports authority, Namport, is seeking debt

co-funding of N$1.2 billion ($64.5 million) to extend its quay

wall by at least 300 metres to accommodate more platform support

vessels. The total cost is estimated at N$2 billion to N$2.5

billion.

TotalEnergies' offshore operations are supported from

Luderitz port, while Shell and Galp are buttressed from Walvis

Bay as new players including Chevron ( CVX ) are set to start

exploration soon, said Namport CEO Andrew Kanime.

"If we extend it, (the quay wall) will then enable us to

maybe double or even triple berth availability," he told

Reuters.

Berthing capacity at the physically constrained port, where

fishing and mining cargoes vie for space, stands at 95%.

Planned construction will likely be delayed to early next

year as Namport awaits the necessary environmental and

archaeological authorization, Kanime added.