THE Ministry of Mines and Energy says Namibia is considering the possibility of acquiring a stake in the Lobito Refinery in Angola or constructing its own refining facility.
This comes as the country is on the brink of becoming an oil producer amid potential oil discoveries off the coast of Namibia by TotalEnergies and Shell.
The Lobito Refinery is a planned new refinery that will have the capacity to produce up to 200 000 barrels of refined crude oil per day, being spearheaded by Angola’s state-owned Sonangol EP.
Acting executive director of mines and energy Brian Eiseb says the government’s position stems from Angola being ahead of Namibia in terms of oil discovery and oil production.
He says the ministry has visited the refinery to garner the possibility of Namibia acquiring equity.
“And that is why we were invited to look at the possibility of taking up some equity in the new Lobito Refinery that Angola is planning to accept.
“So, it was purely skills based. It’s a decision that has not been cemented yet.
“We are still in the exploratory phase of whether it’s viable for Namibia to take up equity and shares in the Lobito Refinery, or whether we should establish our own refinery,” Eiseb says.
Asked about the possibility of Namibia reconsidering its stance on importing fuel from Angola, which is priced significantly lower than in Namibia, Eiseb says the government’s interactions with Angola are purely around oil production and discovery, as well as partnerships in terms of skills, capacity development and technical development.
“As you know, Namibia is on the verge of becoming an oil-producing country. We took the position to say let us look at our neighbouring countries and see how they have refined and matured in terms of oil production, oil discovery and production,” Eiseb says.
Relating to the government’s solutions to rising local fuel prices, which increased by N$1,20 per litre for petrol and N$1,70 per litre for diesel this month, Eiseb says the ministry will continue to turn to the National Energy Fund to cushion the blow for consumers.
He warns that the fund’s use should not be seen as the first resort while the government looks into more lasting solutions to protect the consumer.
“It’s really a tool that we need to use sparingly – especially in good times. We need to build that fund so that in difficult times we would be able to utilise that fund to cushion consumers against rising oil prices,” he says.
Qatar Energy, Shell and TotalEnergies have discovered substantial oil reserves offshore Namibia in the Orange River Basin, near Lüderitz, of which Namibia is expected to generate N$105,9 billion (U$5,6 billion) per annum in state revenue. – The Brief
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