Vitol fuel deal 'to save state N$1bn'

Mines and energy minister Modestus Amutse says the government's decision to appoint Vitol Bahrain E.C. as Namibia's sole supplier of bulk petroleum products from July to September 2026 will save the state approximately N$1 billion over the three-month period.

In an interview with Namibian Sun, Amutse said four companies, including international firms, submitted proposals before government selected Vitol.

“Through this arrangement, we will save the government N$1 billion in three months. Every month we are saving over N$300 million. My interest is to find a supplier that can provide cheaper fuel to the Namibian people and free up funds for other developmental projects,” he said.

Amutse stressed that Vitol is not a newcomer to Namibia's fuel market.

“This company is not supplying Namibia with fuel for the first time. They have been involved for a long time. The difference now is that they are offering fuel under a negotiated model that is cheaper,” he said.

According to the minister, government has spent more than N$1 billion on fuel imports since 28 February.

“We are simply trying to meet the demands of our country and its people. I am ready to cooperate with industry players going forward,” he added.

Questions over beneficiaries

However, the arrangement has drawn scrutiny because of Vitol's existing business relationships within Namibia's fuel sector.

Documents seen by this publication show that Vitol's supply network includes six buyers: Namcor, Nasan, Puma Energy, TotalEnergies, Vivo Energy and Validus Energy.

Validus Energy is 70% owned by Vitol Holdings, while Namibian businessman Mathews Hamutenya, through Millennium Investments, holds the remaining 30% stake.

Hamutenya's son, Miguel Hamutenya, co-founded Nasan Energies, which has grown into the country's third-largest fuel retailer after acquiring 52 service stations.

The overlap has raised questions about whether the government's decision could indirectly benefit both father and son through Vitol's commercial relationships.

Amutse rejected suggestions that government is involved with either Validus or Nasan under the new arrangement.

“Namcor, Vivo, Puma and Total are the ones forming part of our arrangements. Nasan and Validus are not part of our arrangement. People want to mix things up, but we are not dealing with them. If Vitol is dealing with them, that is their business,” he said.

He further defended Vitol's operations in the local fuel market.

“Vitol has been supplying fuel for as far back as six years. It has nothing to do with us. Vitol can sell to whoever they want. Vitol supplies companies that, in turn, sell fuel in Namibia, and that has nothing to do with the government's arrangement,” Amutse said.

“We do not dictate which business relationships they enter into. We are not interested in who owns what.”

Sole supplier

The minister also defended the decision to limit the arrangement to three months.

“We picked three months to avoid a monopoly. If it was a prolonged arrangement, then it could create a monopoly,” he said.

The explanation comes despite government granting Vitol exclusive control over Namibia's bulk fuel supply during the three-month period.

Under Vitol's own supply structure, Validus Energy - in which Vitol is the majority shareholder - remains one of its buyers.

Hamutenya, who served on Namcor's board between 2010 and 2014, therefore stands to benefit indirectly through his minority stake in Validus while Vitol controls the country's bulk fuel imports.

Emergency arrangement

In a letter dated 21 May 2026 to Namibian Oil Industry Association (NOIA) chief executive Harald Schmidt, Amutse formally announced the arrangement.

“This letter serves to inform you that the Government has made emergency arrangements for the bulk supply of petroleum products, petrol and diesel, with Vitol for the period July–September 2026.

“This means that Vitol will be the sole supplier and hold the full mandate to supply Namibia's petroleum product requirements over that three-month period,” the minister wrote.

NOIA members were instructed to immediately submit confirmed fuel requirements for July, along with indicative demand forecasts for August and September.

“This is to allow the supplier to make the necessary allocation for the month of July 2026 delivery to Walvis Bay, Namibia, at BFP flat,” Amutse wrote.

Previous Validus controversy

The new arrangement comes against the backdrop of a previous fuel-storage agreement involving Validus Energy and Namcor that government officials reportedly described as a “bad contract” favouring private interests.

In January, Namibian Sun reported that Validus held a five-year agreement with Namcor to store fuel at the state-owned Walvis Bay storage facility, comprising seven tanks with a combined capacity of 75 million litres.

Under that arrangement, Hamutenya's company allegedly paid a storage tariff of only four cents per litre, translating to monthly payments of approximately N$1.8 million to Namcor.

Industry sources argued that the rate was significantly below market value and could have cost the state an estimated N$100 million in potential revenue over the life of the contract.

Nasan appeal

In a separate development, the Namibia Competition Commission (NaCC) in March 2026 prohibited Nasan Energies from sourcing fuel from Vitol for five years.

“For a period of five years from the implementation date, the acquiring group (Nasan) shall not purchase, procure, import, or otherwise source petroleum products, whether directly or indirectly, from Vitol,” NaCC chairperson Andreas Ithindi stated in a letter issued earlier this year.

Nasan subsequently appealed the ruling directly to Amutse.

Questions sent to Namcor's chief executive officer and board of directors remained unanswered at the time of publication. Mathews Hamutenya also did not respond to questions sent over the weekend.