Pay more for more extractive stakes: Mulunga

Government cannot ask for more shareholding in mining unless it invests more in exploration projects, says Namcor boss Immanuel Mulunga.

16 April 2021 | Energy

MATHIAS HAUFIKU

WINDHOEK



Namcor boss Immanuel Mulunga says concerns over the government's minimal shareholding in mining and oil exploration projects across the country is due to the cash-intensive nature of the business.

Government has over the years always received 10% shareholding on mining and exploration projects. Namcor is currently as 10% shareholder in the ongoing controversial Recon Africa drilling project taking place in Kavango East.

“You cannot ask for more shareholding if you are not willing to fork out more financial resources, our people need to understand that. There is significant investment that goes into exploration and this cost is mostly carried by the investors,” said the former petroleum commissioner.

Mulunga was speaking during Namibian Sun's 'Evening Review' show on Tuesday, where he touched on an avalanche of issues related to the petroleum industry.



Exploration

He also said Namcor wants to lessen its dependence on the fuel levy by increasing its revenue streams.

“We want to devise additional revenue streams to ensure financial stability, this will also ensure that we compete internationally,” he said.

Mulunga also said Namcor will pay government N$2.5 million monthly for the usage of the national oil storage facility in Walvis Bay.

Mulunga also took note of the concerns over the exploration activities by Recon Africa in Kavango East, saying “there is a lot of misinformation going around”.

“There could be potential damage but it is a matter of mitigating those risks because we have a good environmental law. We are confident that there will be issues but we are ready to deal with those issues a manner that protects our environment. Namibia is a sovereign state and we should make use of our resources to help our people,” he said.



Optimistic

His appearance on the show came just two days before Recon Africa announced that oil exploration activities in Kavango East have unearthed “a big potential for a very valuable energy resource” and “evidence of a working conventional petroleum system”. The results are from the first of three wells it planned to drill.

Dan Jarvie, petroleum systems chemist and member of ReconAfrica's Advisory Board, yesterday stated that: “These shows are indicative of migrated, thermogenic petroleum and occur over three different intervals in the 6-2 test well. The intervals penetrated include highly porous, permeable sediments and marine source rocks as predicted, and an extensive marine carbonate lithofacies.

“Mud gas results indicate a high BTU gas with the presence of light oil in numerous cutting samples. Based on these initial results, the components and processes for a working petroleum system are all present,” Jarvie said. Mines and energy minister Tom Alweendo said the results of the well confirms a potentially valuable energy resource for the country and therefore a significant development for Namibia's onshore exploration efforts.

“The positive results of this well have provided us with the critical information required to unlock the country's petroleum prospectivity and is the first step in the process of locating significant accumulations. We can now confidently confirm Namibia is endowed with an active onshore petroleum basin,” he said.

Similar News

 

Mbangu welcomes ReconAfrica oil find

1 week ago - 23 April 2021 | Energy

KENYA KAMBOWERUNDUDespite environmental concerns over the oil and gas exploration activities being undertaken by ReconAfrica at Kawe village in the Kavango East Region, the recent...

Nored sinks into the red

1 month - 25 March 2021 | Energy

OGONE TLHAGE WINDHOEKNorthern regional energy distributor Nored – which has not produced audited financial reports for over six years – is struggling...

Vivo Energy revitalised by new headquarters

1 month - 19 March 2021 | Energy

Yochanaan CoetzeeVivo Energy Namibia, the local licensee for Shell, yesterday celebrated the completion of their move into their towering new headquarters, aptly named “Vivo House”,...

Protests in Germany over Namibian biomass

2 months ago - 04 March 2021 | Energy

ELLANIE SMIT WINDHOEKProtests flared up last week in Hamburg, Germany, against a project investigating the feasibility of using Namibian bush biomass to...

Govt backs Recon’s Kavango oil hunt

3 months ago - 25 January 2021 | Energy

KENYA KAMBOWEKAWEDespite a number of objections against the planned oil and gas exploration at Kawe village in the Kavango East Region, the government has given...

Fuel prices remain unchanged for January

3 months ago - 06 January 2021 | Energy

NAMPA WINDHOEKThe ministry of mines and energy has announced that fuel pump prices will remain unchanged countrywide for January due to the...

Kahimise resumes CEO duties

5 months ago - 17 November 2020 | Energy

ESTER KAMATIOTJIWARONGOThe chief executive position at Cenored has been filled by Robert Kahimise, who assumed duty on 1 November and signed his contract last Friday.This...

Probe ordered into Namcor fuel deal

9 months ago - 15 July 2020 | Energy

OGONE TLHAGE WINDHOEKPublic enterprises minister Leon Jooste has confirmed an instruction to the National Petroleum Corporation of Namibia (Namcor) board to investigate allegations that the...

Fuel prices expected to remain meek

11 months ago - 04 June 2020 | Energy

Phillepus Uusiku- The association between the Organisation of Petroleum Exporting Countries (OPEC) and independent oil producers such as Russia reached an agreement last month to...

Zambia denies expropriation

11 months ago - 04 June 2020 | Energy

Zambia's government said on Wednesday it had no intention of taking over Copperbelt Energy Corp (CEC), after the company accused the government of expropriating its...

Latest News

Local cosmetics industry growing

14 hours ago | Business

Namibia’s cosmetics industry has grown considerably and 34 businesses currently export products worth over N$100 million per year. The minister of Industrialisation and trade, Lucia...

More than N$10 bn in...

14 hours ago | Economics

Jo-Maré Duddy – Commercials banks last year granted clients severely impacted by the Covid-19 pandemic debt relief to the tune of N$10.3 billion in total.About...

Shiimi kicks out Agribank board...

14 hours ago | Agriculture

MATHIAS HAUFIKU WINDHOEKAgribank board chairperson Michael Iyambo was recently forced to resign from his...

Kora trial: We were misled,...

14 hours ago | Justice

ELLANIE SMIT WINDHOEK The Namibia Tourism Board (NTB) was misled and wrongly made to believe that the organisers of the failed...

Africa Briefs

14 hours ago | Economics

Zambia, Angola ink oil pipeline dealZambia and Angola have signed an agreement aimed at constructing a pipeline for the transportation of finished petroleum product between...

Quit singing songs of fake...

14 hours ago | Opinion

Whose freedom is the blood of those who perished in Cassinga watering? This is one in a myriad of questions we must ask ourselves as...

Bumper six months for Agra

14 hours ago | Business

Jo-Maré Duddy – Agra Limited weathered the Covid-19 storm in the six months ended 31 January 2021, reporting an increase of nearly 66% year-on-year in...

Police can’t find army general’s...

14 hours ago | Justice

Kenya Kambowe RUNDUThe second suspect in a stock-theft case involving former Namibia Defence Force (NDF) Major-General Thomas Hamuyela is nowhere to...

Shangula pours cold water over...

14 hours ago | Health

JEMIMA BEUKES WINDHOEKHealth minister Dr Kalumbi Shangula has allayed fears that the Covishield...

Load More