Patience Makwele
Presidential advisor and head of the Upstream Petroleum Unit Kornelia Shilunga says placing the upstream petroleum unit under the Presidency is meant to build public confidence that the oil and gas sector is managed with seriousness, integrity and transparency.
Shilunga said the structure creates direct oversight and accountability.
“By anchoring the unit in the presidency, there is a direct line of oversight and accountability. It is our hope that this measure enhances public confidence that the sector is being managed with the seriousness, integrity and transparency that it demands,” she said at a media training on the upstream oil and gas sector hosted by Petrofund in Windhoek on Friday.
She said the move allows faster decision-making, better coordination across ministries and alignment with national priorities such as Vision 2030.
President Netumbo Nandi-Ndaitwah established the unit last year after taking office.
Earlier this year, Nandi-Ndaitwah called for lawmakers to speed up the legal framework for the sector.
She was referring to the oil bill which is under debate in the National Assembly. The bill sets out powers for the presidency in the sector.
Members of parliament have raised concerns that the sector is moving ahead of the laws meant to guide it.
Shilunga said the success of the sector will depend on governance and strong institutions.
“The success of Namibia’s oil and gas sector will not depend solely on what lies beneath our seabed,” she said, “but on the strength of our institutions, the quality of our governance and the clarity of our communication.”
At the same training, the chairperson of the Namibia Petroleum Operators Association (Nampoa), Eduardo Rodriguez, said drilling one well can cost about US$100 million (approximately N$1.64 billion) and success rates are low.
“Would you invest in a business where you have a 10% chance? It is like going to a casino,” he said.
He said it can take up to 15 years from exploration to production.
“When you hear the final investment decision (FID), it sounds simple, but you are deciding to invest the equivalent of Namibia’s GDP into one project,” he said.
Rodriguez said Namibia is competing with countries such as Brazil and regions like the Gulf of Mexico for investment, making policy certainty important.
Petrofund chief executive officer Nillian Mulemi said the growing interest in the sector places pressure on policymakers and the media.
“Inaccurate or sensational reporting can create misinformation, distort expectations and undermine trust,” she said.
She said in some countries, oil revenues make up more than 70% of government income, which shows the need for strong governance.
Chevron country manager Beatrice Bienvenu said increasing the state’s share in projects could raise financial risks.
“You cannot become so indebted that you cannot pay for it,” she said.
