WINDHOEK, Sept 22 – Namibia has selected a TotalEnergies-led bidding group to supply the country’s bulk diesel and petrol requirements for three months from November through January, as the government moves toward a more competitive fuel procurement system.
Energy Minister Modestus Amutse said the winning bid covers approximately 345 million litres of fuel, with diesel accounting for the majority of the supply.
The contract follows Namibia’s decision earlier this month not to renew an exclusive fuel supply agreement with global commodities trader Vitol, which had been extended through October.
The TotalEnergies-led bid offered an average discount of 63.85 Namibian cents per litre, generating estimated savings of approximately N$220.5 million ($13.57 million) for the country, according to Amutse.
Namibia opens fuel procurement to competition
Amutse said the government intends to continue using competitive procurement to secure fuel supplies at favourable terms while maintaining national supply security.
“The ministry will continue to use open competition to buy the country’s fuel on the best possible terms without ever putting security of supply at risk,” Amutse said in a recorded video message.
Namibia’s fuel supply market includes state-owned Namcor, TotalEnergies, Vivo Energy, the local arm of commodities trader Vitol, Puma, backed by Trafigura, and newcomer Nasan Energies.
The new procurement arrangement marks a shift away from the exclusive supply structure that had previously concentrated bulk fuel imports under Vitol.
For Namibia, the competitive tender is intended to balance procurement costs with the need to maintain reliable access to petroleum products in a market that depends heavily on imported fuel.
TotalEnergies expands Namibia energy presence
The agreement also comes as TotalEnergies advances its broader energy interests in Namibia.
The French energy company is negotiating fiscal stability terms with the Namibian government ahead of a final investment decision on its Venus offshore oil project.
Namibia is seeking to develop its emerging petroleum industry with the objective of achieving its first oil production by 2030.
The fuel supply contract therefore adds a downstream component to TotalEnergies’ existing upstream presence in the country, while Namibia continues to develop policies around fuel security, petroleum imports and its prospective oil industry.
