Nasan Energies appeals fuel sourcing ban after acquiring 52 service stations 

The Namibian Competition Commission has barred Nasan Energies from sourcing fuel from Vitol for five years following its acquisition of 52 retail service stations.

“For a period of five years from the implementation date, the acquiring group [Nasan] shall not purchase, procure, import, or otherwise source petroleum products, whether directly or indirectly, from Vitol,” the commission’s chairperson Andreas Ithindi notifies Nasan Energies in a letter dated 12 March.

The deal, approved by the commission this month, will see Nasan position itself as the country’s third-largest fuel retailer.

Nasan was co-founded by businessman Miguel Hamutenya (33), who is part of a family with established interests in the energy sector.

The Namibian reported in 2023 that Miguel’s father, Mathews Hamutenya, co-owns Validus Energy with Vitol SA.

Through Millennium Investments, Mathews holds a 30% stake in the company, while Vitol Holdings owns the remaining 70%.

The merger was approved but with conditions.

The commission’s letter bars Nasan from buying fuel from, or entering into trading arrangements with Vitol-linked entities amid concerns about unfair competition.

This appears to be the commission’s attempt at preventing a monopoly in Namibia’s petroleum market.

The competition commission says Nasan will not be able to buy from third parties who source fuel from Vitol, and any existing fuel supply agreements with Vitol are declared null and void immediately.

In addition, Nasan will be required to disclose supply agreements to the commission, proving it has taken reasonable steps to ensure its supply is independent of Vitol.

The condition is understood to be aimed at limiting the influence of large international traders in Namibia’s fuel market and preventing excessive concentration in the downstream sector.

APPEAL

Nasan has disputed the conditions that prohibit them from trading with Vitol.

In a letter dated 27 March, addressed to the competition commission’s chief executive and secretary, Nasan director Shiraz Tobias notifies the commission of the company’s intention to seek a review of the conditions with minister of industries, mines and energy Modestus Amutse.

“Nasan intends to seek a review of the commission’s decision and appropriate relief in relation to the conditions opposed,” Tobias says.

He is not happy that the merger as communicated to Nasan is yet to be published in the Government Gazette.

“We kindly request that the commission, as a matter of urgency, advise when the determination is expected to be published. We are informed that once a determination has been submitted for publication, the office responsible for Government Gazette publications within the Ministry of Justice [and Labour Relations] ordinarily provides the commission with an anticipated publication date,” he says.

Nasan says the commission has not been providing the company with answers. It then escalated the issue to the political office.

In a letter dated 30 March, Nasan lawyer Fadzai Musodza of Ndeli Ndaitwah legal practitioners notifies Amutse of the matter.

“The purpose of this letter is to respectfully bring the honourable minister’s attention to the recent decision by the Namibian Competition Commission regarding the merger, and to notify the minister of our client’s intention to seek review and the appropriate relief in relation to the conditions imposed by the commission’s decision,” the law firm says.

Nasan’s lawyers have confirmed in the letter that they intend to appeal the decision.

“Our client awaits publication of the commission’s decision in the gazette, before they may formally apply to the minister for a review of the conditions imposed by the commission’s decision,” the law firm says.

NO COMMENT

Mathews yesterday said: “Your questions are relevant, but I cannot answer on behalf of Nasan and Vitol. That would be illegal. I can even be sued for that. Please reach out to Nasan and Vitol.”

Miguel did not respond to questions sent to him this week. Nasan Energies managing director Jean Ollomo said the company will not comment on the matter.

According to the Ministry of Industries, Mines and Energy, Vitol – through its subsidiary Vivo Energy – is the third -largest importer of oil to Namibia.

Last month, Independent Patriots for Change leader Panduleni Itula flagged this transaction as a strategy to control the fuel retail space.

“. . . thereby creating a corporate link at the centre of the petroleum network,” he said.

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