Allexer Namudjembo
Energy lawyer Shakwa Nyambe says Namibia’s oil and gas sector has grown beyond the powers given to the minister of industries, mines and energy and the petroleum commissioner under the current oil law.
He said this as parliament debates changes to the Petroleum (Exploration and Production) Act.
Nyambe said he supports the Petroleum (Exploration and Production) Amendment Bill, adding that the changes are needed to update regulations and attract investment in the upstream sector.
Nyambe explained that the 1991 law concentrates extensive authority in the Minister of Industries, Mines and Energy and the petroleum commissioner, a structure he said no longer fits the scope of current upstream activity.
Under the existing act, the minister issues exploration and production licences, approves development and production programmes, and oversees petroleum operations through the petroleum commissioner.
Industries, mines and energy minister Modestus Amutse brought the bill to the National Assembly last week. The proposed changes would move major decision-making powers over the oil and gas sector from the minister to the Presidency, giving the President authority to grant, renew or revoke oil and gas licences.
The move follows a decision made last year by President Netumbo Nandi-Ndaitwah to place the Upstream Petroleum Unit under the Presidency.
Nyambe said the shift would reduce political influence in technical decisions.
“By transferring most operational powers from the minister to the new director general of the Upstream Petroleum Unit, the act removes any perception that political considerations might override technical merit in decision-making,” he wrote.
Nyambe said other oil-producing countries have adopted similar models.
“Although in some countries like Ghana and Nigeria, the regulators are separate commissions or state-owned enterprises, they still often report to the Energy Minister or President. For example, Ghana’s Petroleum Commission is a stand-alone regulator established in 2011 after Ghana’s first oil, specifically to manage upstream resources with an emphasis on efficiency and citizen benefit. Ghana recognised that prudent management and a strong regulator were imperative once oil was found,” he adds.
Nyambe added that the structure could improve coordination between ministries on environmental approvals and fiscal issues linked to large projects.
The bill also introduces accountability measures. The law requires senior officials in the Upstream Petroleum Unit to declare their assets and business interests, and it establishes performance standards for regulators.
However, opposition members of parliament have raised concerns about concentrating authority in the Presidency.
