Rudolf Gaiseb
The Namibian government says its endeavours to build an oil refinery need to be informed by the confirmation of a steady supply of oil.
While government has confirmed a desire to establish an oil refinery, it notes that such a massive investment must be supported by the adequate availability of domestic oil.
Mines and energy minister Modestus Amutse said during last week’s press engagement, that there are strong prospects of confirming economically viable qualities of oil in Namibia, but until that is realised, a refinery project remains the right plan.
Amutse noted it is not a matter of wanting a refinery, but it must be economically sound to establish and operate such an investment. “Oil refineries will be informed by the availability of supply. And there is nothing preventing the country from establishing an oil refinery. That’s our wish as a government and as a nation to have an oil refinery,” he said.
He added that the volumes of crude oil available will directly inform the size of the refinery and that the intended size and the associated costs are major variables in the planning process. But most importantly, he added that the ultimate decision “also depends on the operators and what they aim to get out of the refinery”.
According to the minister, Namibia sources petroleum products from various countries, including African and European suppliers, among others, and does not depend on one single supplier. Amutse said Namibia has an open market policy.
“So, anyone who satisfies our requirements to supply and meet all the requirements is welcome to do business with us,” he said. When asked by the media to name some of the present countries supplying Namibia with oil, Amutse said Nigeria, Angola, Algeria, Russia and India could be some of Namibia’s potential suppliers.
“There are choices and what I can confirm is that as a responsible government, we definitely have not just been sitting; we have been engaging and we will inform the nation when we start or decide on any of these many countries that I have mentioned,” he stated.
The major suppliers currently are four, comprised of Puma Energy, Total Energies, National Petroleum Corporation of Namibia (Namcor) and Vivo Energy.
Namibia’s domestic consumption currently averages between 95 million and 100 million litres of fuel monthly, with a significant majority (70%) consisting of diesel. However, there was a surge in fuel consumption last month due to panic buying, escalating to around 120 million litres.
But overall, Amutse reassured the public that Namibia currently holds adequate fuel stocks and continues to receive scheduled fuel imports through various international supply arrangements. The ministry, together with industry stakeholders, continues to closely monitor national fuel levels, while strengthening engagements with local, regional and international fuel suppliers, and diversifying procurement arrangements.