Africa-Press – Namibia. President Netumbo Nandi-Ndaitwah wants Namibia to produce oil in record time.
She made her ambitious goal known last week while delivering her maiden State of the Nation Address.
Already, Nandi-Ndaitwah has positioned the oil and gas sector as a transformative force for Namibia’s economy over the next five years.
“The oil and gas sector holds the potential to transform our economy in the next five years. This new industry will require close monitoring, hence my decision to place it in the Presidency, as I look to nurture its potential for the benefit of Namibians. To gain maximum benefit from this industry, the oil refinery is part of the programme, she declared.
“The 8th administration will place unwavering focus on ensuring that Namibia achieves first oil production within the shortest timeframe. We will accelerate strategic partnerships, streamline regulatory processes, and invest in critical infrastructure,” she said.
She noted that this milestone could enhance energy security, expand electrification to underserved areas, boost job creation and lay the groundwork for sustainable economic growth.
TotalEnergies
Last week, a TotalEnergies delegation visited Nandi-Ndaitwah.
The oil giant vowed to win-win cooperation with Namibia.
On the refinery issue, both TotalEnergies and the Namibian government appear aligned in their intention to maximise the country’s hydrocarbon potential and secure long-term benefits through a win-win situation for both parties.
TotalEnergies has expressed its commitment to helping Namibia derive substantial benefits from its emerging oil and gas industry but not through the construction of a domestic refinery, a plan the company views as economically unviable.
Instead, the energy giant said it will collaborate with the government to explore alternative ways to ensure fuel access and national benefit.
The company said it will co-develop a strategy tailored to Namibia’s unique needs and realities without necessarily resorting to the costly and potentially inefficient route of domestic refining.
In a recent interview with New Era at State House, the CEO of TotalEnergies, Patrick Pouyanne, emphasised the importance of aligning with Namibia’s development goals while maintaining economic realism.
“We need to get to work in order to align our views. Let’s work together,” the CEO said.
The topic of building a refinery in Namibia has been a point of public and governmental interest, seen by many as a potential pathway to job-creation, fuel security and value addition. However, the CEO was candid in assessing the viability of such a project.
TotalEnergies is currently not investing in refineries worldwide, citing market oversupply. Nevertheless, he emphasised the company’s openness to supporting Namibia’s energy ambitions in other ways.
“There are ways, I think, to reach the objective of the government in terms of supplying gasoline and diesel at a good price, which we will study alternatively, maybe taking part of the shares of Namcor to send it to Europe and to refine it. We’ll see what’s the best way. But, again, the government expressed its wishes, and we’ll consider that and work on it,” he said.
The CEO said the economics of refining oil in Namibia are challenging.
“It’s a small market, Namibia, and so, to make a very small refinery just for the market, generally it costs a lot. So, I’m not sure it’s the best way to secure a supply of gasoline and diesel for the citizens of Namibia; we could try another way,” he said.
He further warned against building an export-focused refinery, citing tough global competition. “I don’t recommend making an export refinery to the President because there is competition with other very large refineries – China, India and Saudi Arabia.
So, I perfectly understand the logic it was raised because, of course, the citizens of Namibia would like to have the benefit of having access to a good price of gasoline.”
For More News And Analysis About Namibia Follow Africa-Press
