IMELDA AMBONDO
Minister of Industries, Mines and Energy, Modestus Amutse has tabled the Petroleum (Exploration and Production) Amendment Bill which seeks to provide for the transfer of certain powers from the Minister of Industries, Mines and Energy to the President.
The Bill which has faced criticism from some quarters provides for the transfer of certain powers from the Minister of Industries, Mines and Energy to the Director-General: Upstream Petroleum Unit in the Office of the President, provide for the transfer powers from the Commissioner for Petroleum Affairs to the Deputy Director-General: Upstream Petroleum Unit.
Tabling the Bill, Minister Modestus told Parliament that Namibia is at a critical stage in its economic and energy journey. He said the discoveries require a strong, modern and transparent legal framework to guide the petroleum sector responsibly.
“This Bill is of strategic importance to the management and governance of Namibia’s petroleum resources,” he said.
The Bill amends the Petroleum (Exploration and Production) Act of 1991 and introduces several key changes.
One major proposal is to cement the establishment of the Upstream Petroleum Unit, a new regulatory authority that is in the Office of the President. The Unit is led by a Director-General and a Deputy Director-General, who oversee all upstream petroleum operations in the country.
According to the Minister, this change brings all technical, regulatory and compliance functions under one professional body that can respond efficiently to the growing petroleum industry.
“This reform ensures that our technical, regulatory, and compliance functions are brought under a single, professional institution,” he said.
Under the new system, the Director-General will be the main regulator responsible for licensing, compliance and oversight, while the Deputy Director-General will manage daily technical work and supervise staff and inspectors.
The Bill also strengthens transparency and parliamentary oversight. “It requires that all remissions, deferrals, or refunds of petroleum royalties be reported annually to the National Assembly by 30 June,through a designated minister or the Prime Minister.” Modestus said.
The Minister said this will ensure Parliament remains fully informed about how petroleum revenues are managed.
The Bill further tightens ethical rules in the petroleum sector. Conflict-of-interest provisions will now also apply to inspectors and staff of the Upstream Petroleum Unit, with penalties for violations.
Senior officials, including the Director-General and Deputy Director-General, will be required to declare their assets and interests to the President.
“These measures strengthen public confidence and uphold the principles of integrity and transparency,” the Minister said.
The Bill ensures that existing licences and agreements remain valid, and that ongoing applications will continue under the new authority. This is meant to protect investor confidence and allow a smooth transition to the new system.
Minister Modestus said the Bill is forward-looking and shows Namibia’s readiness to manage petroleum resources responsibly.
“It empowers the State to better oversee exploration and production activities and guarantees that Parliament continues to play its rightful oversight role,” he said.
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