Local BEE Company Loses Namcor Contract

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By Petronella Sibeene

WINDHOEK

The National Petroleum Corporation of Namibia subsidiary – Namcor Trading – has awarded a tender to a Switzerland registered company Afroneft to act as its import agent for 50 percent of petroleum products required by Namibia.

The supply agreement between Namcor Tra-ding and Afroneft is for the period January 1 to December 31 2008.

Managing Director of Namcor Samuel Beukes said yesterday that the three-year tender, previously awarded to one of Namibia’s BEE Company Namibia Liquid Fuel (Pty) Ltd expires on December 31, 2007.

Beukes says that because of the expiry of the present contract it became necessary to secure an alternative supplier.

The joint venture Namibia Liquid Fuel (Pty) Ltd, between Sasol Oil (Pty) Ltd, and PetroNam Investments (Pty) Ltd aimed to promote local participation in the Namibian fuel industry.

Due to lack of capacity by the few existing local companies in existence, no local companies were approached for the contract.
Namcor Communications and Public Relations Specialist Katrina Sikeni said the company was looking for a better deal than it has enjoyed in the past.

It therefore took care only to invite tenders from, and select reputable fuel suppliers with a proven track record, access to a variety of product sources, taking into account their ability to supply in accordance with local fuel specifications, and their financial strength and credibility.

Eight invitations to tender were sent out, and seven bids received, with three companies short-listed while Afroneft eventually won the tender.
Afroneft backed by Glencore UK Limited is a reputable international trading company with more than 30 years in the petroleum trading industry.

The company plays a critical role in supplying crude oil to many refineries and in turn enters into long-term off-take agreements for partners’ refined products.

“This sets Namcor up for major expansion in the petroleum downstream sector both nationally and internationally,” said Sikeni.
Namibia imports about 830-plus million litres of fuel a year, including kerosene, Avgas and other liquid fuels manufactured by Sasol.

Other large multi-national oil companies like BP and Total supply the balance of Namibia’s fuel imports on a commercial basis from their South African-based refineries.

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