NAMCOR: Fuelling Movement and Progress for Namibia

NAMCOR was established in 1967, since which time it has become responsible for reconnaissance, exploration and production operations both through solo pursuits and by partnering with other noteworthy industry names.

“Our vision is to be a world-class petroleum organisation providing sustainable benefits to all stakeholders,” NAMCOR declares, which it intends to fulfil by way of successful, mutually beneficial partnerships and offering convenience and quality products and services to its broad range of customers.

“We will meet shareholders’ expectations by running profitable and successful operations,” NAMCOR continues, “and be a responsible corporate citizen which is mindful of the community and the environment in which it operates.

“If it’s not world class, it’s probably not us.”

OIL STORAGE SCOOP

Namibia’s National Oil Storage Facility was constructed by its government to safeguard security of fuel supply amidst growing demand, receiving its first fuel consignment of some 35,000 metric tons of diesel at the end of 2020. Construction of the multi-billion-dollar facility began in January 2015, and today it consists of a tanker jetty, multiple product pipelines and a terminal of seven tanks with a capacity of 75 million litres.

Although the decision was taken some time ago, in 2019, that NAMCOR was to operate and maintain the facility fending off competition from several international bidders, the announcement came in March this year at the official handover ceremony as NAMCOR successfully took charge of the facility.

“NAMCOR has been appointed by the government of the Republic of Namibia to manage and operate the new state-of-the-art storage facility in Walvis Bay,” the company celebrates. “Upon completion, this will improve Namibia’s security of supply of petroleum products.”

Potentially increasing Namibia’s security of fuel supply from between seven and 10 days to 30-45 days, this storage provision is a critical lifeline in situations where the country may be unable to easily import petroleum products from the international market. In addition to its primary function as strategic storage, the site will also serve a commercial purpose, to ensure that this valuable resource is constantly used and replenished.

“The facility will therefore not only be used for NAMCOR’s own trading purposes, but also to host other international oil-marketing companies, such as Vitol and Gunvor, Vivo and Total, to ensure it is utilised optimally, and that Namibia becomes a strategic gateway through which neighbouring African countries are supplied,” commented NAMCOR Chairperson Jennifer Comalie.

“This is indeed a monumental milestone in NAMCOR’s history, as we take pride in operating and maintaining this proudly Namibian petroleum infrastructure; built for Namibia and managed by competent Namibians.” Comalie added.

NAMCOR intends to add further storage sites in strategic locations across the country, explains Immanuel Mulunga, Managing Director of NAMCOR. “The new national oil storage facilities will allow us to fully activate our downstream strategy, which involves the expansion of our storage footprint within Namibia.”

DELIVERING ON FUEL NEEDS

Since its recent entry into the downstream retail sector NAMCOR has been working tirelessly on rolling out several service stations, all placed at strategic locations around the country. The first of these arrived in the form of the NAMCOR Hosea Kutako International Airport Service Station, and paved the way for the first truly Namibian-owned service station.

The Minister of Mines and Energy, Tom Alweendo said during the opening ceremony that the development not only offers Namibian motorists a wider choice of fuel outlets to purchase from, but also provides business opportunities to Namibians as, while NAMCOR invested in the construction of the site, it will be operated by Namibian entrepreneurs.

NAMCOR has set itself the ambitious target of having at least 33 operational fuel stations by 2024, and the latest on the road to achieving this is in Windhoek, set to deliver on the nation’s refuelling needs.

NAMCOR’s expansion strategy is primed to continue to allow greater swathes of the populace easier access to fuel, not only across the country but also potentially in neighbouring countries. Currently it has five new sites currently under construction, with a further eight in development all around Namibia.

“NAMCOR continues to implement its expansion strategy across Namibia in line with the directives of our visionary leadership. As part of this priority, the company seeks to deliver world-class services to the public through our state-of-the-art service station infrastructure and facilities,” stated Mulunga.  

The commercialisation of Namibia’s hydrocarbon resources is one key arm of NAMCOR’s central directive, profitably delivering petroleum products to the Namibian market. “In so doing,” the company stresses, “ensuring security of supply of this highly sought-after global commodity.”

NOT PIPE DREAMS

“NAMCOR’s primary mandate is twofold, however,” NAMCOR continues. “The hydrocarbon exploration side of our operations tackles the search for deposits of hydrocarbons, particularly petroleum and natural gas, from the earth. It has been tasked with the herculean responsibility of exploring and harnessing the hydrocarbon potential of Namibia.”

In a history littered with successful and profitable partnerships, NAMCOR may just have initiated its most notable to date. In a bid to unlock the vast resource potential in Namibia, NAMCOR has signed a JOA with Reconnaissance Energy Africa (ReConAfrica) to develop those of the Kavango Sedimentary Basin, Northeast Namibia.

Under the agreement, the two companies will jointly pursue an ongoing petroleum exploration program in the Kavango East and Kavango West regions of Namibia. “We understand the hydrocarbon potential of the Kavango Basin,” Mulunga expounded, “hence collaborating with an international company with both technical and financial capabilities such as ReconAfrica will unlock the discovery of commercially viable hydrocarbon reserves and thereby enhance economic development in the country.”

To date, ReconAfrica has drilled two test wells in the Namibian petroleum licence area, both of which have revealed evidence of a working conventional petroleum basin, and plans to drill an additional two wells in 2021. “In these first two wells,” ReconAfrica director Dr Jim Granath stated, “the many oil and gas shows, with such variety, is certainly remarkable. It is highly encouraging to see clastic and thick carbonate sections which appear to have similar reservoir characteristics as observed in many other petroleum provinces.”

These further explorations will determine whether the Kavango Sedimentary Basin will yield a commercially viable petroleum reservoir, and, if so, ReconAfrica and NAMCOR could activate a 25-year Production Licence.

“We’re pleased to finalise this operating agreement, which solidifies our partnership with

NAMCOR,” Scot Evans, Chief Executive Officer of ReconAfrica. “We look forward to working with NAMCOR as we jointly endeavour to unlock the potential of Namibia’s vast national resources, providing jobs, economic growth and long-term responsible resource development – which includes significant contributions to the social and environmental aspirations of the country.”