18 October 2015, Windhoek – After announcing its intention to restore its fuel import mandate, the National Petroleum Corporation of Namibia is not very forthcoming about the strategy that would guide the restoration of this crucial downstream function.
In an attempt to understand the dynamics that would guide the restoration, the Economist contacted NAMCOR’s Executive for Corporate Communications, Utaara Hoveka for clarity on the matter. Responding in writing, he said, “NAMCOR is currently working on getting its mandate back to import 50% of the country’s requirements. We are carefully assessing the various aspects that need to be in place, to ensure smooth operations when the mandate is returned.”
Restoring NAMCOR’s 50% import mandate will effectively reserve half of the downstream petroleum market for the state-owned operator.
NAMCOR, through its board chairman, Johannes !Gawaxab recently announced that the restoration of its fuel mandate was on the cards. NAMCOR could not provide a clear guideline on when it would ideally restore the fuel mandate, how and from where it would procure the required fuel estimated to be 500 million litres annually, whether it would affect pricing nor could it provide detail on what it would mean for existing fuel suppliers, Vivo Energy Namibia, Engen Namibia, Puma Energy and Total Namibia.
- Namibia Economist