Namibia: Namcor Offered Stake in South Africa Refinery Project

Managing Director Sam Beukes said NAMCOR has not yet made a decision on whether it would take South Africa's national oil company PetroSA up on that offer, but said that strategically it made sense for Namibia, which imports all of its fuel.  "By taking that equity stake we can achieve security of supply without having to build a refinery in the country," Beukes told media.  PetroSA said in October it would ask the government to open up the $10 billion project for private investment to help with the cost, with the national oil company retaining a 37.5 percent stake. The government has yet to decide on the proposal.

Namibia imports all of its fuel needs of around 40,000-50,000 barrels per day, which are expected to grow between 3-4 percent each year. While a refinery in Namibia would come with a price tag too great for the country of 2.2 million people, joining with South Africa seemed the best option.  Beukes also said that the long-delayed Kudu gas-to-power project was likely to start producing in 2014.   He added that the government restructured the ownership of the project, with NAMCOR and Gazprom to jointly own a majority stake in the joint venture developing it.

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