TotalEnergies CEO advises Namibia against building refinery
TotalEnergies chief executive Patrick Pouyanné has advised President Netumbo Nandi-Ndaitwah against pursuing the construction of an oil refinery, arguing that Namibia’s small market size would leave it struggling to compete against larger economies for oil resources to refine.Pouyanné made the remarks following a closed-door meeting with Nandi-Ndaitwah, during which he briefed her on the company’s proposed projects. TotalEnergies recently postponed making a final investment decision (FID) on its Venus project, which, once developed, is expected to become the deepest oil well in the world.
"Namibia would have to compete with other very large refineries — in China, India, Saudi Arabia — and that places it at a disadvantage," Pouyanné said.
"I do not recommend building an export refinery. I fully understand the logic behind the idea, because of course the citizens of Namibia would like to benefit from better access to affordable gasoline. We will study ways to help," he added.
Pouyanné further noted the complexities and high costs associated with operating a small-scale refinery aimed at serving a limited market.
"I think it is complex. Building a very small refinery just for the local market usually costs a lot. I am not sure it’s the best way to secure fuel supply. There could be other ways to ensure the availability of gasoline and diesel for Namibian citizens," he said.
He also confirmed that TotalEnergies would not consider setting up a refinery in Namibia as part of its investment strategy.
"To be honest, TotalEnergies is not investing in refineries. If there were a project, we could participate, but we believe it is an oversupplied market," Pouyanné said.
However, he suggested alternative strategies to meet Namibia’s fuel supply needs.
"There are ways to achieve the government's objective of supplying gasoline and diesel at good prices, which we will study. Perhaps we could use part of Namcor’s shares, send the crude oil to Europe for refining, and then return the products. We will see what works best," he said.
Once operational, the Venus well could produce up to 150 000 barrels of oil per day.