New law bars officials from oil stakes 


Justicia Shipena and Allexer Namundjembo

Senior officials who will run the upstream petroleum sector will now be required to declare their assets and business interests under amendments to the Petroleum (Exploration and Production) Act tabled in Parliament this week.

The Petroleum (Exploration and Production) Amendment Bill requires the director general and deputy director general of the newly created Upstream Petroleum Unit to submit statements of their assets, liabilities and business interests to the President shortly after appointment and whenever required. 

This includes any interests linked to petroleum activities.

The draft bill aims to enhance transparency and minimise conflicts of interest. 

The bill was brought back to the National Assembly on Wednesday by industries, mines and energy minister Modestus Amutse.

Amutse stated that Namibia has reached a pivotal moment due to significant offshore oil discoveries.

“This bill is of strategic importance to the management and governance of Namibia’s petroleum resources,” Amutse told parliament.

He said the amendments update the 1991 Petroleum Act to reflect current realities and align Namibia’s petroleum governance with international practice while ensuring accountability to Parliament and the public.

A central feature of the bill is the establishment of an Upstream Petroleum Unit in the office of the President. 

After taking office, President Netumbo Nandi-Ndaitwah established the Upstream Petroleum Unit in the Presidency and placed the upstream petroleum sector under her care. 

A director general and a deputy director general will lead the unit, supervising all upstream petroleum activities.

According to Amutse, the new structure brings licensing, regulation, and compliance under one institution, which improves coordination and decision-making.

“This reform ensures that our technical, regulatory, and compliance functions are brought under a single, professional institution,” he said.

Under the proposed framework, the director-general will act as the main regulator responsible for licences and oversight, while the deputy director-general will manage daily technical operations and supervise inspectors.

The bill also strengthens reporting requirements. Any remission, deferral or refund of petroleum royalties must be reported to the National Assembly by 30 June each year.

“This provision ensures that Parliament remains fully informed about the management of petroleum revenues,” Amutse said.

Officials are also barred from holding interests in petroleum licences or companies, directly or indirectly, including through spouses. Violations can result in fines or imprisonment.

“These measures strengthen public confidence and uphold the principles of integrity and transparency in our petroleum administration,” Amutse said.

“This guarantees regulatory continuity, protects investor confidence, and ensures a smooth transition from the old system to the new one.”

The amendments also shift key powers from the minister of industries, mines and energy to the President, including authority over certain licences, regulations and strategic decisions. 

Operational functions move to the Upstream Petroleum Unit in the Presidency.

Popular Democratic Movement leader McHenry Venaani questioned why the ministry should no longer oversee the oil and gas sector.

“Every leader comes with their own style of leadership,” Venaani said.

He referred to the governance style of former president Hage Geingob.

“President Hage Geingob was very fond of saying that he believed in systems, processes and institutions. He was very adamant in arguing that the culture of presidents directly involving themselves with investors is a wrong culture,” Venaani said.

Venaani warned against changing laws to suit individual leaders.

“We must be very careful. Do not modernise the law to suit a leader. President Netumbo Nandi-Ndaitwah will not be there forever. We cannot modernise legislation to suit her plans. We must modernise the vision that the country must take,” he said.

He said the bill concentrates ministerial powers in the Presidency.

“There is a reason why we created Cabinet. What they are doing through this legislation is giving the powers of the minister to the President, because the powers of the minister will now be located in the Office of the President,” Venaani said.

The bill came a day after Nandi-Ndaitwah, when opening Parliament on Tuesday, called on lawmakers to urgently consider amendments to laws governing Namibia’s natural resources.

Independent Patriots for Change (IPC) parliamentary leader Immmauel Nashinge also objected, questioning whether the public was consulted.

“Why are we moving too fast? The other time, statements were made that the oil is not ours. We are really not in control, yet you are coming up with a bill that has more contradictions,” Nashinge said.

“We do not want the first oil to become the first scandal,” he added.

The bill follows earlier attempts to amend the Petroleum Act. Last year, Parliament put a similar proposal on hold after opposition lawmakers questioned its urgency.

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