As the United States of America and Israel continue to wage an illegal war on Iran, the resultant geopolitical and market volatility has resulted in a surge in global oil prices. 

Brent crude, the most significant benchmark for global oil prices, was hovering around US$104 per barrel yesterday after hitting US$106 per barrel on Sunday. 

This is where Namibia’s National Oil Storage Facility (NOSF) continues to play a critical role in protecting the country from fuel supply disruptions and cushioning consumers from the inevitable impact of increasing global oil prices. 

NOSF remains one of Namibia’s most important strategic assets. By centralising fuel imports, maintaining emergency reserves and enabling efficient distribution across the country, the facility provides a critical safeguard for the domestic economy. 

In a global energy landscape currently shaped by volatility and geopolitical uncertainty, the NOSF stands as a key line of defence, ensuring the nation’s fuel supply remains stable, secure and resilient. 

Located on the outskirts of Walvis Bay and operated under the mandate of the National Petroleum Corporation of Namibia (Namcor), the facility serves as the central gateway for petroleum products entering the country. With a total storage capacity of 75 million litres and a strategic reserve designed to last up to three months, the NOSF has become a key pillar of Namibia’s energy security architecture. 

Victoria Nepembe, acting terminal manager of the NOSF and deputy director of the National Energy Fund within the Ministry of Mines and Energy, said the facility is part of a broader institutional framework governing the petroleum sector. 

“For Namibia, right now, we have three months of strategic stock. Also, each fuel company is required to keep 30 days of fuel reserves. When we buy fuel, we are also trying to maintain fuel integrity. Once you buy the fuel and it is not used for three months, you must sell it. This is where the government has to make sacrifices, because it must sell the fuel at the price at which it was bought. Also, remember that strategic stocks are not meant to cushion us from rising fuel prices. It is meant to cushion us from supply disruptions,” Nepembe said. 

She added that Namibian consumers are cushioned from rising global oil prices by the National Energy Fund (NEF). 

Nepembe said, “For as long as we are still importing fuel, we are vulnerable to oil shocks of any kind or due to any instability, such as what is happening now in the Middle East, where many countries are major oil producers. 

Therefore, the National Energy Fund then steps in to cushion Namibian consumers when the global oil price rises. 

While the government owns both Namcor and the NOSF, the facility itself functions as a neutral logistics hub rather than a commercial trader”. 

“We do not import fuel, we do not sell it, and we do not trade. Our role is simply to receive vessels, discharge the product, store it and load it onto trucks for distribution”. 

Central gateway 

All petroleum products entering Namibia by sea pass through the NOSF jetty. 

From there, fuel is transported via pipelines, spanning roughly seven kilometres, from the jetty to the storage terminals. 

NOSF currently handles multiple products essential to Namibia’s economy, including diesel, unleaded petrol (ULP) and heavy fuel oil (HFO), which is mostly used by mining companies as well as Jet A1 aviation fuel. 

Each product has dedicated storage tanks and pipelines to avoid cross-contamination. 

The largest share of the facility’s capacity is reserved for diesel, around 45 million litres, reflecting Namibia’s heavy reliance on diesel for mining, transport and electricity generation. 

Two tanks of 10 million litres each are allocated for petrol, while Jet A1 and heavy fuel oil each occupy tanks with a capacity of approximately five million litres. 

“This facility was designed as a multi-product terminal,” Nepembe said. 

“Each product has its own pipeline from the jetty and its own dedicated tank, ensuring operational safety and product integrity,” she added. 

Supply stability 

Beyond its operational role, the NOSF also provides Namibia with an important strategic buffer against supply disruptions by maintaining strategic reserves. 

Global oil supply chains are extremely vulnerable to geopolitical shocks, conflicts and shipping disruptions. When crises occur, particularly in major oil-producing regions such as the Middle East, countries that are heavily dependent on imports, like Namibia, face sudden supply risks.In such scenarios, the strategic reserves stored at the NOSF allow Namibia to maintain fuel availability while alternative supplies are arranged. 

However, maintaining these reserves poses operational challenges, as fuel stored for extended periods must be rotated to preserve quality and chemical stability. 

Support 

Although NOSF is operated by Namcor, it serves the entire fuel industry. 

International and regional oil companies such as Puma Energy, Vivo Energy and TotalEnergies regularly use the NOSF jetty to discharge petroleum products. 

If a shipment is destined directly for a company’s own storage terminal, it is pumped through dedicated pipelines without entering NOSF storage tanks. 

However, companies facing storage constraints can rent temporary space at the facility. 

“We discharge products for every industry player,” Nepembe said. 

“If they do not have sufficient storage capacity, they can store their product here for a fee,” she noted. – ebrandt@nepc.com.na