Energulf Resources Inc. ENGFF

RE:RE:Namibian oil project to start earlier than expected

[wallywill]

Katali's bid for cheaper fuel

Submitted by NamibianSun101 on Tue, 2014-07-08 01:00

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  BURNING DESIRE: Iran is one of the oil-rich nations that Namibia has approachedThe Namibian government has approached Iran, Nigeria and Angola in an effort to deal with escalating fuel prices. This was confirmed to Namibian Sun this week by Mines and Energy Minister Isak Katali, who said he had personally held talks with representatives of Iran and Nigeria to set up a refinery in Namibia, while the talks with Angola were about Namibia financially aiding the construction of a refinery in Lobito. Katali said a memorandum of understanding had been signed in June last year with Angola for that country to supply crude oil to Namibia, which would be refined somewhere else and then imported. Katali said under the same agreement, Namibia had requested Angola to participate in the construction of the second phase of its Lobito refinery, by investing money in exchange for shares and petroleum. The minister said there had also been talks about setting up a refinery with the help of the Iranian government. “In 2012 I went to Iran to pursue it, but it never materialised.” Katali said talks with the Nigerian government about building a local oil refinery are ongoing. He said there had also been talks about setting up a privately owned refinery at Lüderitz. Recently, DTA leader McHenry Venaani said Namibia should look into ways of getting oil from Angola and setting up a refinery on the Namibian-Angolan border. Venaani said Angolans pay N$6 per litre for fuel, while Namibia is paying N$13 per litre. “This situation can be rectified by importing our fuel from Angola. The economy can be turned around in ways never imagined,” said Venaani. He added that the business sector’s intervention is needed, but that the government should play the leading role. Venaani said the government must create the necessary business environment in which cheaper fuel products can be accessed in Namibia. He urged that “capital flight” be addressed in order to invest profits in Namibia rather than allowing them to leave the country. He said existing companies doing business in Namibia should be encouraged to put forward proposals for an oil refinery. He suggested that other SADC counties could co-invest to put up a refinery for the region, so it can benefit from Angola’s oil reserves. “Inasmuch as Africans talk about inter-Africa trade, not much is done to maximise this, as African resources are exported in raw form to the European market.” Katali said he had asked Angola to provide Namibia with refined petroleum products, but to his surprise they only have the capacity to refine 30% of the fuel they use. “Meaning that they themselves are importing oil to cover the rest of the 70%, therefore they are not in position to supply us.” He said people talk of cheap petrol in Angola, but it is a controlled commodity. Katali said Angola heavily subsidises its fuel. “Even if we buy it from there, we are not going to buy it at a subsidised rate. We are going to buy it at international rate… we obviously cannot make it cheaper than normal.” The Namibian government could also subsidise fuel, but at this stage such a suggestion is farfetched, Katali said. WINDHOEK SELMA IKELA