Namibia has awarded a three-month fuel supply contract to a bidding group led by TotalEnergies, strengthening the French energy giant’s position in the country’s fuel market as Namibia moves away from its previous exclusive arrangement with Vitol.
The agreement, covering November 2026 to January 2027, will see the winning group supply approximately 345 million litres of petrol and diesel, with diesel accounting for the bulk of the volumes.
According to Namibia’s Minister of Industries, Mines and Energy, Modestus Amutse, the successful bid offered an average discount of 63.85 Namibian cents per litre, generating estimated savings of about N$220.5 million ($13.57 million) for the country.
The contract follows Namibia’s decision not to renew its exclusive fuel supply agreement with global commodities trader Vitol after extending the arrangement through October. The government has instead opted for a more competitive procurement process involving multiple industry players.
Amutse said the ministry would continue using open competition to secure fuel on favourable terms while ensuring that the country’s supply remains secure.
Namibia’s fuel market includes state-owned Namcor, TotalEnergies, Vivo Energy, Puma Energy and Nasan Energies, with the latest award highlighting the growing competition for a share of the country’s downstream energy market.
The deal also comes at an important time for TotalEnergies’ wider operations in Namibia. The company is currently negotiating fiscal stability terms with the government ahead of a final investment decision on its Venus offshore oil development.
Namibia is seeking to establish itself as a significant oil producer and is targeting first oil production by 2030. A successful development of the Venus project could significantly expand the country’s energy industry and attract further investment into its offshore sector.
For TotalEnergies, securing the latest fuel supply contract provides an additional foothold in Namibia’s energy market while the company continues discussions over its major offshore investment.
The development also reflects Namibia’s broader effort to balance fuel security, competitive pricing and long-term energy investment as the country prepares for potential growth in both its downstream and upstream petroleum industries.
