The National Petroleum Corporation of Namibia (Namcor) says it has considered various options to get back the mandate to import most of the country’s fuel, and now only needs the approval of the Ministry of Mines and Energy.
Among the options being considered is to create a trading company to import most of the one billion litres of fuel used annually. It also wants to consolidate total demand on behalf of the industry, create a joint venture to procure fuel on behalf of the country and exploit opportunities created by the bilateral agreement with Angola.
Namcor was previously mandated to source and supply 50 percent of the country’s automotive fuel requirements to ensure security of supply. In 2008, Glencore was contracted by Namcor to source and supply the 50 percent but the contract was cancelled in 2010 due to the significant risks Namcor was exposed to. This left private companies with the obligation to import fuel.
Currently, all of Namibia’s fuel is imported by Engen, Puma, Shell Vivo and Total.
During a financial results presentation last week, Namcor chairman Johannes !Gawagab said the state-owned enterprise is fully competent to handle the fuel import mandate.
He also noted that Namcor will operate the future 75-million litre storage facility in Walvis Bay, constituting an investment of close to N$4 billion, which is expected to be completed by mid-2017.
The storage bunker will enable the country to increase its current storage capacity from 14 to 30 days and it will be the largest fuel storage facility in the country.
The future bulk storage facility will be the first-ever to be 100 percent owned by the government through Namcor. Existing storage facilities are owned by private oil companies.
Namcor further intends to establish depots in strategic towns such as Ondangwa, Grootfontein, Mariental, Keetmanshoop, Gobabis and LÜderitz.
During the ground-breaking ceremony for the construction of the new storage facility, then permanent secretary of the Ministry of Mines and Energy, Kahijoro Kahuure, noted that it would not only strengthen Namibia’s international standing, but put Namcor in a position to acquire additional skills the company did not have in the past. He said these new skills would enable Namcor to effectively and efficiently manage the facility once it is up and running by 2017.
Meanwhile, !Gawagab also noted that Namcor has made significant strides to improve corporate governance and internal controls.
In this regard Namcor has embedded an integrated corporate governance framework and structure and produced external audit statements for the year ended March 2015. It has also developed a business continuity management strategy, disaster recovery, risk framework, risk register, a compliance framework and review of board committee charters.