Namcor’s N$8bn Angolan oil deal collapses

National oil company Namcor’s high-profile Angolan oil deal, initially worth N$8 billion and with a N$524 million deposit paid – and subsequently refunded – has collapsed.The deal fell through after Angolan state oil company Sonangol reportedly signalled it no longer wished to proceed with the partnership, following four years of delays.Namcor, through its London-based joint venture Sungara Energies, co-owned in equal shares with Sequa Petroleum and Petrolog Group, had committed to paying around US$450 million (approximately N$8 billion) for a 10% stake in Block 15/06, a 40% working interest in Block 23, and a 35% interest in Block 27.As part of the agreement, Sungara paid a deposit of N$524 million to Sonangol.However, controversy erupted after Namcor managing director Imms Mulunga authorised a N$100 million payment on behalf of Sequa Petroleum, which had not secured its funds in time to meet the deposit deadline.Fearing the deal would fall through, Mulunga approved the payment from Namcor’s coffers without board approval.Negative media coverageThis action led to his suspension by the Namcor board, although he was later cleared of wrongdoing by both the Anti-Corruption Commission (ACC) and an internal disciplinary process.In 2023, Sonangol refunded the N$524 million to Sungara, citing dissatisfaction over negative media coverage in Namibia, particularly surrounding the unauthorised nature of the N$100 million payment.Sources close to the matter told Namibian Sun that the new Namcor board, chaired by Florentia Amuenje, who was appointed in July 2024, initially did not support the continuation of the deal and moved to freeze further transactions.“When the new board took over, they halted all progress on the deal,” a source said. “When Ebson Uanguta was appointed as interim managing director, he tried to revive the agreement but lacked support from the board.”Yet, despite a renewed attempt to salvage the deal in recent months – bolstered by ACC’s conclusion that Mulunga’s intervention may have averted major financial losses – Namcor’s bid to secure new financing failed.Lenders reportedly cited insufficient time to process funding applications before Sonangol’s final payment deadline of April this year. No financial lossesOfficials now maintain that the full N$524 million initially paid has been recovered and remains in the Sungara Energies account, with no financial losses incurred.“When Sonangol refunded the deposit, it wasn’t returned directly to Namcor and partners but was retained in Sungara’s account. Namcor is now in the process of retrieving its portion,” an official said.Sonangol’s leniency in not enforcing financial penalties for the failed transaction is reportedly a gesture of goodwill attributed to the strong political ties between Angola and Namibia.“In a purely commercial context, the Sungara partners would likely have forfeited millions in penalties,” the official added.The ACC’s investigation reached similar conclusions, warning that the deal’s collapse posed serious financial risks due to contractual obligations.“Failure to pay the full deposit within the timeframe specified in the sale and purchase agreement would result in a breach of contract, and Sonangol would have the right to terminate the agreement and still hold Sungara Energies liable for the US$22.6 million deposit,” the ACC warned in its report.Namcor's board chairperson, Amuenje, had not responded to a request for comment at the time of publication.

Namcor’s N$8bn Angolan oil deal collapses

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Namibian Sun 2025-11-04

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Namcor’s N$8bn Angolan oil deal collapses

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Namibian Sun 2025-11-04

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