Namibia has selected a TotalEnergies-led bidding group to supply the country with bulk diesel and petrol for three months, as the government moves away from an exclusive supply arrangement with commodities trader Vitol.
The contract, covering November through January, involves about 345 million litres of fuel, mainly diesel, according to Namibia’s Minister of Industries, Mines and Energy, Modestus Amutse.
TotalEnergies’ group offered an average discount of 63.85 Namibian cents per litre, which the government estimates will save about NAD220.5 million ($13.6 million).
The award follows Namibia’s decision earlier this month not to renew its exclusive fuel supply agreement with Vitol beyond October. The arrangement had made Vitol a key supplier of the country’s petroleum requirements.
“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 main fuel suppliers include state-owned Namcor, TotalEnergies, Vitol-owned Vivo Energy, Trafigura’s Puma Energy and Nasan Energies.
The supply contract further expands TotalEnergies’ presence in Namibia as the French energy major progresses plans for the country’s emerging offshore oil industry.
TotalEnergies is separately negotiating fiscal stability terms with the Namibian government ahead of a final investment decision on its Venus offshore oil development. Namibia is targeting first oil production by 2030.
