TotalEnergies has spent more than US$141 million on locally sourced goods and services in Namibia since 2022, expanding its direct supplier base from just eight companies to 62 — yet industry leaders at a major upstream workshop delivered a clear message to Namibian businesses: the opportunity will not be handed to them, and significant gaps in certification, technical capability and compliance must be closed before local firms can fully capitalise on the country’s emerging oil and gas boom.
TotalEnergies Lead for Contracts, Procurement, Engineering and Local Content, Veronica Mungonena, told the Upstream Oil and Gas Local Suppliers Workshop that approximately 10 per cent of the company’s total expenditure has been directed to local suppliers, with a deliberate focus on majority Namibian-owned businesses. “We are making a deliberate effort to ensure that Namibian businesses are part of this journey,” she said, while stressing that access to oil and gas contracts requires suppliers to meet stringent international standards for health, safety, environment and technical readiness.
“Companies should concentrate on developing strong capabilities within specific sectors. Specialisation will improve competitiveness and increase the likelihood of securing opportunities within the industry,” Mungonena said, adding that TotalEnergies continues to engage with the local business community through supplier workshops, targeted outreach programmes and sessions focused on specific areas such as waste management and transportation.
The same message was reinforced by representatives from Halliburton and Baker Hughes. Halliburton Procurement Specialist Jaumbuaije Zauana said many local suppliers still struggle during the qualification process despite growing interest in the sector. “There are still challenges in the local market, particularly around technical capability, certification and infrastructure. For example, API certification and access to specialised equipment remain critical gaps. We receive interest from vendors who indicate they can provide certain services, but when assessments are conducted, we often find they lack the required certifications or their facilities are not adequately equipped,” she said.
Zauana warned that suppliers who fail to meet industry standards risk causing costly operational disruptions. “If something goes wrong, it can result in unproductive time, which is extremely expensive in this industry,” she said, noting that procurement decisions are based on service quality, technical expertise and reliability — not price alone.
Baker Hughes Country Director Victor Joseph was equally direct on the non-negotiable requirements of sector participation. “Health, safety, environment, quality and safety come first. We want every worker to return home safely at the end of the day. If you want to be a supplier or partner in this industry, safety and quality must be your top priorities,” he said, adding that the company applies a zero-tolerance approach to bribery and corruption and continuously monitors supplier performance through regular reviews.
RMB Namibia Sector Head for Oil and Gas, Energy and Resources Angelique Peake framed the moment as a critical juncture for Namibia’s industrial development. “We are moving from exploration to execution and now towards ecosystem building. This is what an industry looks like when it begins to organise itself, and everyone has a role to play,” she said, urging local businesses to invest early in capability development and engage with financial institutions to secure the funding needed for expansion. “The opportunity exists, but it will not simply be handed to us,” Peake said.
Source: angolanminingoilandgas.com