Stefanus Nashama
The National Petroleum Corporation of Namibia (Namcor) has announced plans to reform various aspects of its operations to enhance its competitiveness locally and globally.
The company has also taken steps to address internal and external challenges to strengthen its mandate.
This is according to a statement released by Namcor on Tuesday.
“From financial restructuring to operational realignment, we have taken major steps to turn around the company’s performance, foster accountability, and create a culture of excellence,” stated the company.
According to Namcor, the company has paid N$555 million to Gunvor, one of its key suppliers, to restore financial credibility and foster trading partnerships.
This involves a substantial N$1.2 billion sovereign guarantee with Namcor and its primary suppliers.
“Following a N$1.2 billion sovereign guarantee, Namcor successfully settled significant financial obligations with key suppliers. Notably, a down payment of N$550 million was made to Gunvor, restoring Namcor’s financial credibility and strengthening relationships with trading partners,” said the statement.
The company also stated that it has implemented operational improvements, including integrating the sales and marketing, supply, and logistics departments.
This has streamlined operations, reduced redundancies, and improved coordination across the business.
According to Namcor, cost optimisation of these initiatives has at least saved N$22 million in 2024.
The company has renegotiated with key supplier contracts on debt restructuring and strategic pricing to achieve economic scales and increase competitiveness.
“The renegotiation of key supplier contracts, including a revised Basic Fuel Price (BFP) agreement, has allowed Namcor to achieve economies of scale and increase its competitiveness,” the company said.
The company has renegotiated terms that are projected to increase gross margins by N$15 million over the next 12 to 18 months.
With regard to upstream partnerships, Namcor has signed a farm-out agreement with Chevron, allowing Chevron to acquire an 80% operating working interest in Petroleum Exploration License (PEL) 82 for N$90 million.
Namcor said it has partnered with key suppliers to strengthen its upstream exploration capabilities and position the company for future growth in Namibia’s energy sector.
The company has also implemented rigorous measures to address internal misconduct.
“Legal proceedings have been initiated against former employees involved in misconduct, and several key positions have undergone disciplinary action. These actions demonstrate Namcor’s commitment to integrity and governance,” said the company.
Although the company has announced these progresses, it is still aiming to achieve more.
This involves focusing on the company’s growth strategy, operational efficiency, and delivering value to shareholders, customers, and employees.
Namcor further aims to transform itself into a global leader in the energy industry.
