Namcor’s 10% stake misunderstood – Mulunga

OGONE TLHAGE WINDHOEK The National Petroleum Corporation of Namibia (Namcor) has defended its meagre 10% shareholding in the recently discovered oil find by Shell, saying it protects the company from the risk that comes with exploration.Namcor was also criticised in October last year by lawmakers who questioned its 10% shareholding in the Kavango East oil exploration project by Canadian firm ReconAfrica.Speaking on Namibian Sun’s The Evening Review on Monday, Namcor managing director Immanuel Mulunga said the company was poised to benefit over and above the cited 10% shareholding it typically owns in exploration projects.“You have to consider there is more than Namcor’s 10% equity that Namibia will be getting. There are royalties that will be paid on the production of oil, which is 5%; there is petroleum income tax yielded at 35%; so when you divide up the cake, ultimately government will walk away with anything between 60% to 65% while not having taken the risk,” he said.The costs and associated risks of exploration also made it very unattractive for Namcor to take a bigger stake in licence blocks, he explained.“This past well cost in the region of US$70 million [N$1 billion] and there was a 75% chance of them not getting, discovering anything,” Mulunga said.Can turn fortunes aroundThe potential royalties from the Shell/Qatar Energy discovery could also turn things around for Namibia, he said.“Once production happens and we start getting those royalties, I think it can really turn the fortunes of the country around.”The current arrangement in which Namcor has 10% in the recently spudded well was the best for all parties involved, Mulunga said.“The equity levels between government [Namcor] and private companies are quite evenly distributed and everybody will be able to make money and that is how you want the space to be.”Welcome boostMines minister Tom Alweendo welcomed the discovery, saying it comes at a time when the economy needs a restructuring.“I congratulate Shell, Qatar Energy and Namcor on their recent oil discovery offshore. It gives us a clear shot at reimaging our economy.“When the time comes, we need to think boldly in structuring a recovery model that is in the best interest of all stakeholders,” he said.

Namcor’s 10% stake misunderstood – Mulunga

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Namibian Sun 2025-03-06

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Namcor’s 10% stake misunderstood – Mulunga

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Namibian Sun 2025-03-06

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