By:Kandjengo kaMkwaanyoka

THE discovery of oil in Namibia’s waters has ignited tremendous excitement both domestically and internationally, as the nation eagerly awaits the commercial appraisal of these wells. However, amid the buzz and enthusiasm surrounding this significant development, there is a noticeable absence of discourse regarding the crucial matter of oil refining.
It’s high time we shifted our attention to this vital issue. Oil imports currently contribute to our trade deficit and deplete our foreign reserves.
While appraisal activities to define the oil and gas volume are underway, leading to the development of facilities for efficient production, there has been no word about the country’s plans for refining crude oil or discussions about inviting investors to assess the feasibility of building a refinery within our borders.
This raises questions about our understanding of economic development.
Are we merely chasing foreign direct investments (FDIs) without considering their long-term impact beyond employment opportunities?
We’re excited about the discovery of oil, but we seemingly have no immediate use for crude oil aside from perhaps supplying Nampower Anixas.
The deafening silence from our policymakers, economic facilitators, and the public is disheartening.
We have become accustomed to traveling thousands of kilometers across oceans to purchase refined fuel from countries like Qatar, Indonesia, and Saudi Arabia.
Simultaneously, individuals are getting arrested daily for seeking fuel in Angola.
So why aren’t we demanding that once the appraisal activities confirm positive results, the country should explore refining options?
These options could include buying a stake in Lobito’s planned refinery in southern Angola or building our own refinery.
Preliminary assessments suggest that Namibia’s oil reserves might be among the largest.
In practical terms, this discovery will be meaningless to motorists and farmers who rely on diesel or petrol if the crude oil is shipped elsewhere for refining.
We then repurchase it at international prices, which have been unfavorably impacted by two consecutive price increases from the ministry.
Investing in a refinery would not only cater to our domestic market but also provide opportunities to supply our neighboring countries, many of which use our port to import refined petroleum products.
This would eliminate the need for intermediaries like Ngungula services. Namcor already supplies fuel to Botswana on a small scale, and expanding this to include refined products would have a significant regional impact.
South Africa has shuttered its refining plants, Angolan refineries operate at reduced capacity, and the Dangote Refinery is quite distant.
This presents an opportunity for Namibia to step in, invest in a larger facility, and collaborate with Angola since there will be an abundance of raw material/crude oil.
We hope that the recent trip by the Ministry of Mines to Angola has imparted valuable lessons, particularly in avoiding the pitfall of exporting crude only to re-import refined products.
Let’s stop celebrating FDIs with minimal impact on the average citizen and focus on value addition to maximize benefits for our nation.
As we await the final appraisal results, let’s engage in forward-thinking discussions. We should assess, in a commercially astute manner, whether to buy a stake in Lobito Refinery or construct our own. It’s time to transition from a reactionary stance to proactive engagement.
By the time these plans materialize, we may even have the technology to use hydrogen in our refinery for desulfurization – an additional advantage worth considering.
Please note that this column reflects the author’s personal opinion and does not necessarily represent the views of the editorial board or The Villager and its owners.
This column does not necessarily reflect the opinion of the editorial board or The Villager and its owners. To contact the author of this piece: Email: gerastus16@gmail.com With love and economic from Okwalondo