Mining and energy power forward
The ambitious national oil company is a key example of how Namibia is fueling its economy
Mining and energy are two of the most dynamic sectors in the Namibian economy, says Tom K. Alweendo, Minister of Mines and Energy: “In energy, we are encouraging private sector investment into generation, especially renewables.”
In mining, the country is rich in resources— including diamonds, uranium and gold—and there are high expectations for its offshore oil and gas. Leading international mining companies already operating in Namibia, supported by an exploration licensing system that is “open and transparent,” notes Alweendo; “To help investors get started, we already have the mapping in place showing the probability of minerals.”
Helping investors in hydrocarbons is NAMCOR, the national oil company of Namibia. “It was initially set up to cater for upstream oil and gas exploration and production, to regulate and to provide regulatory advice to the government,” explains Immanuel Mulunga, its managing director.
NAMCOR’S institutional role is to participate in hydrocarbon exploration on behalf of the Namibian Government and to ensure the optimum exploitation of the country’s petroleum resources. Other main upstream activities include actively promoting the Namibian acreage at local and international platforms to attract hydrocarbon investments. NAMCOR is also the custodian of Namibia’s hydrocarbon exploration data, which includes 2D and 3D seismic data, as well as digital well logs, core and rock cuttings from exploration wells.
The company evolved downstream around 2003. “We were awarded a mandate to import 50 percent of the country’s fuel requirements, and we also started supplying fuel to commercial and industrial customers,” says Mulunga. “At the moment, we are working both upstream and downstream, and they are going well in parallel. But we are more active downstream,” he adds.
Early 2019 will see the launch of countrywide Namcor-branded stations that will be rolled out continuously to build market share. “The government has also decided to make a $400-million investment in strategic fuel storage facilities,” notes Mulunga; “The National Oil Storage Facilities will be completed by mid2019.” NAMCOR will operate these facilities as part of its strategy toward meeting its ambitious 2021 revenue target of $350 million.