NAMCOR INTRODUCTION
NAMCOR is Namibia’s national oil and petroleum company, wholly owned by the Government of the Republic of Namibia. It has two key business focus areas namely; Exploration & Production of oil and gas under its upstream leg and the supply of petroleum products to the market under its Downstream leg.
THE ROLE OF E&P
The Exploration and Production department focuses on upstream activities of the oil and gas industry. Its institutional role is to participate in hydrocarbon exploration on behalf of the Namibian Government and to ensure the optimum exploitation of Namibia’s petroleum resources. Other main upstream activities include being a technical advisor to the Ministry of Mines and Energy, active promotion of Namibian acreage at local and international platforms in order to attract hydrocarbon investments, and is the custodian of storage and brokerage of Namibia’s hydrocarbon exploration data, which includes 2D and 3D seismic data; and digital well logs, core and rock cuttings from exploration wells. At present, 39 exploration licenses, 5 reconnaissance and 1 production licenses have been issued by the Ministry of Mines and Energy. NAMCOR has 10% carried interest in more than 97% of hydrocarbon exploration licenses issued in Namibia (Figure 1). Additionally, NAMCOR has been awarded working interest and operatorship in Block 1711 and 1811A with 100% interest for each block; 67% interesting block 2714A and 2714B. NAMCOR also holds 20% working interest in Block 2914. These exploration blocks are located offshore Namibia in the Namibe and Orange Basins respectively. NAMCOR’s participation in hydrocarbon exploration and future production activities ensures a Namibian presence in this industry, while contributing to local capacity building and development of exploration and production activities in the Hydrocarbon Sector.
HYDROCARBON EXPLORATION DATA •
A total of 35 wells have been drilled offshore Namibia (18 exploration, 7 appraisal (KUDU gas field) and 10 ODP/DSPD wells.
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10 exploration wells have been drilled onshore. Namibia has excellent offshore seismic coverage. ~ 166 728 line km of 2D seismic ~ 58 813 km² of 3D seismic data offshore.
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Onshore, the 2D seismic database comprises of 2,500-line km of 2D.
KUDU GAS FIELD DEVELOPMENT
The Kudu project was previously premised on the building of a new (to be constructed) 885 MW combined cycle gas turbine power station, the Kudu Power Station (KPS), onshore Namibia. However, in late 2017, NamPower suggested that the development of the electricity plant occur via two phases by first building a single power train of 440 MW with a second train to follow, as soon as possible, based on both internal and export demand. The benefit of so doing being to spread the capital outlay in 2 phases yet still be able to provide power to Namibia without requiring the need for exports.
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Namcor nationwide depot footprint A further benefit of the phased approach being that the Kudu gas field would be brought on stream quicker with power being generated within 3 years and thus providing the capability of offsetting costly electricity imports from Eskom, South Africa.
PROJECT STATUS
The Kudu offshore JV operator BW Kudu and 56% interest holder (a wholly owned subsidiary of BW Offshore of Norway) is currently finalizing the engineering plan for the revised development of the Kudu field. Work to be finalized in June 2018 enabling Final Invest Decision thereafter with financial close plan for year-end (2018). The key commercial tie between the Upstream and Downstream projects is the Gas Supply Agreement (GSA). This agreement is in final draft form and anticipated completion date is End-August 2018.
DOWNSTREAM Commercial and Marketing
NAMCOR markets a range of petroleum related products ranging from fuels and lubricants to various clients. The corporation’s stakeholders are from various sectors within the economy such as Government, Mining, Transportation, and Farming amongst others. All products marketed by NAMCOR meet Namibian product specifications! Downstream generally refers to the refining of crude oil, as well as the marketing and distribution of petroleum products derived from this activity. We are very active in the sourcing and selling, as well as the distribution of petroleum products. In line with this, NAMCOR’s downstream strategy is to establish and secure strategically located fuels and lubricant distribution networks, as well as sales infrastructure to boost the company’s brand and provide world-class service to you, our valued customers and business partners. NAMCOR is strategically establishing its fuels and distribution networks by rolling out its Retail Network at key locations throughout Namibia. NAMCOR has since developed a retail and convenience store brand. NAMCOR will become the fifth player in the retail petroleum sector alongside Puma, Engen, Vivo/Shell and Total. The retail petroleum sector