Namibia’s Petroleum Bill Advances as Parliament Debates Presidential Control of Oil Sector
Namibia’s Petroleum (Exploration and Production) Amendment Bill has passed its second reading in the National Assembly, advancing proposed changes to the country’s petroleum governance framework despite concerns over accountability and the concentration of regulatory powers in the Presidency.
The bill secured 50 votes in favour on Tuesday, 20 October, with no votes against or abstentions. Most opposition parties had walked out of an earlier debate in protest over the proposed legislation.
Introduced by Minister of Industries, Mines and Energy Modestus Amutse, the bill seeks to transfer key responsibilities currently held by the minister and the Petroleum Commissioner to the President and a proposed Upstream Petroleum Unit (UPU) within the Office of the President.
The government has argued that the changes would streamline decision-making, improve coordination and strengthen the administration of the country’s emerging oil and gas industry.
However, opposition lawmakers and other critics have warned that centralising authority could weaken institutional checks and balances.
Opposition lawmakers have raised concerns about proposed changes to the management of petroleum revenues, particularly an amendment that would change the finance minister’s role in royalty remissions, refunds and deferrals from requiring concurrence to consultation.
Critics argue that this could weaken financial oversight of decisions affecting public revenue.
Other concerns include the discretion involved in awarding petroleum licences, potential conflicts of interest and the need to ensure that companies meet their environmental restoration obligations.
Lawmakers have also called for enforceable local-content requirements to ensure Namibian businesses and workers benefit from future petroleum developments.
Supporters of the bill have defended the proposed restructuring, arguing that a specialised unit could improve coordination and strengthen the technical administration of the sector.
They have also maintained that establishing the unit within the Presidency would not eliminate Parliament’s legislative and oversight responsibilities.
The proposed Upstream Petroleum Unit would be headed by former deputy mines minister Kornelia Shilunga.
Its establishment is intended to centralise the administration of upstream petroleum activities under the new framework.
The bill will now proceed to the committee stage, where lawmakers will examine its provisions clause by clause and consider possible amendments.
It will then return to the National Assembly for a third reading and final vote before progressing through the remaining legislative steps.
The proposed changes come as Namibia seeks to advance its emerging oil and gas industry following significant offshore discoveries.
The country is targeting its first oil production around 2030, with international energy companies progressing exploration, appraisal and development activities.
TotalEnergies is among the companies pursuing offshore opportunities in Namibia, including the Venus oil project in the Orange Basin.
The company has been working with the government on development and fiscal terms ahead of a potential final investment decision.
The outcome of the legislative process is expected to shape how Namibia regulates petroleum exploration, manages licensing decisions and oversees the revenues generated from its oil and gas resources.
As the bill advances, the debate centres on whether the proposed governance structure can accelerate sector development while maintaining transparency, accountability and effective institutional oversight.
