Staff Reporter
THE National Petroleum Corporation of Namibia (NAMCOR) has defended its coordinated fuel procurement arrangement, stating that it strikes an appropriate balance between affordability, security of supply and commercial sustainability.
“NAMCOR considers the current fuel procurement arrangement to be commercially beneficial and aligned with its national objectives,” said Utaara Hoveka, NAMCOR’s Public Relations and Communications Specialist.
He noted recent public commentary regarding the company’s participation in the arrangement and said NAMCOR wished to clarify its position.
Hoveka explained that, while NAMCOR remains committed to its strategic mandate as Namibia’s national oil company, it is still working to rebuild its financial and operational strength following a period of significant commercial and governance difficulties in recent years.
“In response to these challenges, the Government of the Republic of Namibia intervened on two occasions to safeguard national energy security and stabilise the company. The first intervention took place in April 2024, when N$2.38 billion was secured, followed by a further N$700 million in July/August 2025 to assist the company in addressing critical supplier obligations,” he said.
Despite these interventions, Hoveka said the company continues to experience working capital constraints. He added that NAMCOR remains focused on consolidating the progress achieved through its turnaround strategy, which is aimed at strengthening governance, improving operational efficiency and restoring financial stability.
He further pointed out that, in recent months, NAMCOR has been procuring fuel under challenging market conditions at prices above the Basic Fuel Price (BFP), in some cases reaching up to BFP plus 75 cents per litre, while still relying on parent company guarantees to facilitate procurement.
“The current arrangement provides access to more competitive pricing at BFP flat; it reduces procurement and logistics risks, provides greater certainty of supply and enables NAMCOR to continue generating value through its storage and distribution infrastructure,” Hoveka said.
He added that participation in fuel procurement must remain commercially viable and be underpinned by sound decision-making, effective risk management and strong governance. According to him, the arrangement allows NAMCOR to secure fuel on favourable terms while continuing to strengthen its financial and operational position.
“These benefits further support NAMCOR’s commercial objectives while ensuring a reliable supply of fuel to the Namibian market. NAMCOR believes that the coordinated fuel procurement arrangement provides an appropriate balance between affordability, security of supply and commercial sustainability. The company remains committed to ensuring reliable access to fuel, protecting public resources, supporting Namibia’s energy security objectives and creating long-term value for the people of Namibia,” Hoveka added.
Picture for illustrative purposes only. Photo: NAMCOR
