STAFF WRITER
For years, National Petroleum Corporation (Namcor) has been less of an oil giant and more of a scandal factory, bleeding millions, attracting corruption probes, and watching its top brass march out the door.
Court cases, secret payments, and fuel that allegedly never arrived have stained its reputation. Now, in a bold twist, Namibia’s state-owned oil company insists it’s ready to trade in its history of chaos for a future of profit.
Namcor spokesperson Paulo Coelho told Namibia Business Review the company is in the middle of a strict financial overhaul to stabilise operations and secure long-term survival.
“While government support has been essential during critical moments, we are implementing stringent cost-control measures, enhancing governance, and optimising our investment portfolio,” Coelho said. “We are focusing on upstream interests and international trading opportunities to put Namcor on firmer financial footing.”
It’s an ambitious plan.
Especially for a company still reeling from the 2024 firing of managing director Immanuel “Imms” Mulunga. The former oil boss was dismissed after a string of controversial transactions between 2022 and 2023, including a N$100 million payment for an Angolan oil block without board approval.
Mulunga also faces accusations of authorising a N$53 million payment to military fuel contractor Enercon for fuel that, according to investigators, was never delivered. He is currently fighting these charges in court.
Adding to the turmoil, early this year Namcor saw a wave of senior resignations, a corporate walkout so dramatic it made the biblical exodus look tame.
At the time, the company insisted nothing sinister was behind the departures of Damoline Muruko, Ilda Dos Santos, Isabel Mwazi, Mapenzie Festus, and Khonzani Tizora.
“Their resignations were not linked to investigations or wrongdoing,” Namcor said in a statement. “They left to pursue new opportunities after years of dedicated service.”
But the narrative changed when the Anti-Corruption Commission made its move. Several of once-celebrated executives are now facing charges over alleged unauthorised payments and allegations of kickbacks.
Those in the dock include Mulunga, former commercial manager Olivia Dunaiski, ex-executive Jennifer Hamukwaya, and former supply and logistics head Cornelius “Cedric” Willemse.
For Namcor, the task ahead is daunting, to convince the public and government that it can finally turn the page on its scandal-plagued history and become a lean, profitable force in Namibia’s oil and gas future.
And this time, the stakes couldn’t be higher.
FULL INTEGRATION
Namcor spokesperson Paulo Coelho told Namibia Business Review that the company has made decisions that allow it to be an integrated player in the downstream and upstream operations.
This is despite critics in the industry saying the company has no role in selling fuel at the retail level, as it risks stifling competition.
”Namcor’s strategic participation across both the upstream and downstream sectors was aimed at building a fully integrated national oil company. While downstream operations brought us closer to the consumer and increased brand visibility, the transition came with significant capital outlays and operational challenges. As with any long-term strategic shift, profitability is a work in progress,” Coelho said.
He said Namcor’s entry into the retail space was never to stifle competition but rather to stabilise supply, foster equitable pricing and ensure national energy security.
“As a state-owned entity, our role included filling market gaps where private players were less inclined to invest, especially in underserved areas,” he said.
A HOUSE ON FIRE
Recently, the company released a tell-all affair to the media detailing several challenges, among the heavy losses incurred since 2023, a move the now-troubled Mulunga believes was meant to target him.
In its detailed statement, Namcor said that although revenue had significantly increased in the eight years of Mulunga’s tenure, the company overcommitted on deals it could not sustain and continued to struggle to make a profit.
Failure to make a profit is a deja vu moment for the company, which was plunged into life support 15 years ago after entering a challenging fuel supply deal with Glencore.
“Namcor’s revenue increased significantly from N$610 million in 2017/18 to N$7.4 billion in 2022/23. However, this growth was accompanied by a steep rise in the cost of sales, which escalated from N$559 million to N$7.5 billion over the same period and the cost of sales, which escalated from N$559 million to N$7.5 billion over the same period,” Namcor said in a statement.
According to the company, the substantial increase in revenue did not help Namcor achieve profitability. They said the company recorded its worst losses in 2023, posting a net loss of N$1.3 billion.
“It is crucial to note that these losses were predominantly driven by Namcor Trading, which engaged in high-volume transactions that failed to generate sufficient margins.
“It is also important to highlight that Namcor Trading held one of the lowest market shares in the industry, estimated between 7% and 8% during the same period. This limited market positioning constrained its pricing power and competitiveness, further contributing to the sustained losses,” the company said.
SCAPEGOATING
A few days before his arrest, Mulunga told Namibia Business Review that he cannot be blamed for the sorry state of the parastatal alone.
He added that his regime saw an improvement in revenue inflows at the company.
“These allegations cannot go unchallenged. I left Namcor in April 2023 already, and the company got a bailout last year, but it is still making losses. How can you still blame that on me? It seems like it’s easier to continue putting the blame on Mulunga forever. Plus, the company made profits for the majority of the years that I was in charge, although there were losses also. The losses that were made were not necessarily due to mismanagement but due to unfavourable market conditions and the unwillingness of the shareholder to assist the company like other mother companies did to their Namibian affiliates,” he said.
GOVERNMENT BLAMED FOR FAILURES
A state source with close proximity to Namcor’s operations told Namibia Business Review that the Government has contributed to the continued financial failures at Namcor for more than two decades through the strict regulation of fuel prices.
The source told Namibia Business Review that, “The sales and marketing of petroleum products is a very difficult and complex undertaking, especially in Namibia where the government regulates the prices.”
According to the source, Namcor has been asking the government to adjust the basic fuel price formula even before Mulunga joined the entity, to no avail.
“The losses from the Glencore deal in 2011 were because of the same issue. Even the private players are struggling, but at least they have parent companies to bail them out. This information does not come out in the media,” the source said.
MENDING PERIOD
Coelho said the idea of increasing stake in their different blocs or new ones needs to be treated with caution, as they could push away potential investors.
His views come at a time when President Netumbo Nandi-Ndaitwah has moved the oil and gas downstream division under her watch.
Nandi-Ndaitwah appointed former Deputy Minister of Mines and Energy Kornelia Shilunga as the advisor on that portfolio.
“Namcor holds free carry interests in exploration licenses per the provisions of Namibia’s petroleum legislation. While increasing state ownership is always part of broader national policy discussions, it must be balanced against the financial risks and capital requirements associated with exploration and production.
Our current model allows Namibia to benefit from its natural resources while remaining an attractive foreign investment destination. Commercial viability, strategic benefit, and national development objectives will inform any future adjustments to ownership structures,” Coelho said.
Coelho said Namcor supports the idea of setting up a refinery in Namibia.
“A refinery in Namibia would require a thorough feasibility study considering the volumes of available crude, market demand, and regional integration. While refining can bring value addition and employment opportunities, it is capital-intensive and operates on thin margins. Any move in that direction must be carefully assessed to ensure economic viability and long-term sustainability, particularly in a changing global energy landscape,” he said.
He says the country still has to navigate a few more years before reaping the fruits of the recent oil discoveries that have attracted multinational interest.
“The transition from exploration to production typically spans several years and depends on multiple factors, including appraisal results, infrastructure development, and regulatory approvals. Namibia has made world-class discoveries, and several license holders have now moved into the appraisal and pre-development phases.
We anticipate that first oil production could commence towards the end of this decade, with 2029-2030 being a realistic window, depending on technical feasibility and investment commitments,” he said.
According to Coelo, Namcor needs more than just capital injection from the shareholder to find its footing again.
“While it’s difficult to pin a single figure to complete independence, Namcor’s path to sustainability lies in structural realignment rather than just capital injection. By focusing on upstream assets and strategic trading, we are repositioning ourselves to generate consistent revenue streams.
“Our aim is to transition to a self-sufficient commercial entity that can deliver shareholder value while supporting Namibia’s broader energy ambitions,” he said.
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