Oil refinery in the pipeline

A Namibian-based company intends to construct an oil refinery at the coast.

07 July 2019 | Infrastructure

Immanuel Wilfred; Mayor; “We are doing this to entice investors.”

Walvis Bay • Otis Finck



Clasox Petroleum has applied to acquire 10 ha of land behind Dune 7 at Farm 58 for the construction of an oil refinery.

The Namibian-registered company indicated its intensions in an application dated 2 April 2019 and requested that 10 ha of land be made available to it for the envisioned project. Subsequently a development proposal was presented to the executive management of the Walvis Bay municipal council on 3 April.

Council however pointed out that the process of township establishment of Farm 58 has not been finalized, adding that the Registrar of Deeds advised that no land may be leased or transferred on the Remainder Farm 58 before township establishment has been completed.

The department of roads and building control is currently busy with the incorporation of Remainder Farm 58 into Walvis Bay town and townlands as an erf with the subsequent subdivision of the incorporated portions.

Once this process is complete, only then can council either enter into a long term lease with or alienate portions of the land to potential applicants.



Support

The management committee (MC) said it supports the idea of allocating land for the establishment of the envisioned oil refinery for a number of reasons, chiefly because Walvis Bay has been experiencing significant growth over the past six years and this is expected to continue. The harbour town has also been identified as the growth point for industrialisation in terms of NDP 5.

The MC further stated that from an economic development point of view, the establishment of an oil refinery will contribute hugely to employment creation and poverty alleviation in Walvis Bay. It was therefore resolved that in view of the township development process still to be finalised, Clasox Petroleum be informed that council would be prepared to approve the proposal in principle and that a portion of 10 ha will be reserved in this regard.

“We are doing this to entice investors and in the hope that a detailed proposal will follow. The actual establishment of an oil refinery will be a significant investment. It will mean a lot for the country, the region and the harbour town in terms of foreign investment. Government encourages such initiatives.”

Once the township development processes have been finalized, negotiations will be entered into with the applicant for the lease or outright sale of 10 ha of land. Such negotiations could include a visit to a partner refinery in Bulgaria.

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