The Brief (TB) caught up with Namcor Managing Director Immanuel Mulunga (IM) on the company’s recent exploits in Angola, where it was successfully awarded an oil producing bid with its partners by Angola’s state oil company, Sonangol. Below is an extract of the interview.
TB) What exactly was Namcor awarded in Angola?
IM) Following a public tender by Sonangol for the partial sale of their participating interests in several blocks of their portfolio, Namcor together with its partners, Sequa Petroleum and Petrolog were awarded a 10% interest in a producing block, 15/06 as well as two exploration blocks, being block 23 (40% working interest) and block 27 (35% non-operated working interest)
TB) What does this development mean for the company?
IM) This is a great deal for Namcor because it will immediately transform us into an oil producing company that will generate significant revenues and profits and increase the balance sheet of its exploration and production subsidiary. We would’ve met one of our strategic imperatives of acquiring producing assets outside Namibia half way into our 5-year strategy period.
TB) How long will it take for the company to start reaping the benefits of being invested in the oil blocks?
IM) This will happen immediately once the transaction is approved by the Angolan authorities. We expect this to happen before July/August this year. There are still some key steps that we need to take before we are able to make the final investment decision.
TB) How exactly does Namcor plan to fund its share towards realizing the investment in Angola?
IM) We will fund the acquisition through debt and equity on a project finance basis. We have registered a special purpose vehicle, in London called Sungara Energies Ltd, to do the acquisition.
TB) There have been calls for Namibia to consider fuel imports from Angola. Does Namcor plan to play a role in facilitating that?
IM) No, Namcor will not consider importing fuel from Angola at this stage due to differences in specifications between the two countries as well as our procurement restrictions that mandate us to follow a transparent bidding process.
TB) Finally, any update on your interest in the Nigerian oil industry?
IM) We are also exploring opportunities to acquire producing assets in Nigeria as well but this is not very to accomplish due to very tough competition. We hope we will also be successful there.
