Namibia: Petroleum Bill 2025 Advances to Committee Stage

• The Petroleum (Exploration and Production) Amendment Bill, 2025, has advanced to the committee stage in Namibia's National Assembly.
• This bill seeks to amend the existing Petroleum Act of 1991, transferring regulatory authority for upstream oil and gas.
• The primary amendment shifts power from the Ministry of Industries, Mines and Energy to the Upstream Petroleum Unit within the Office of the President.
• Opposition parties have voiced concerns that these changes could centralize control of the petroleum sector under the President's office.
• The Minister of Industries, Mines and Energy anticipates the legislative process, including downstream amendments, will conclude by year-end.

The proposed legislation specifically aims to transfer oversight of oil and gas activities from the Ministry of Industries, Mines and Energy to the Upstream Petroleum Unit, which will operate under the Office of the President.

The Petroleum (Exploration and Production) Amendment Bill, 2025, has successfully navigated its initial reading in the National Assembly and now proceeds to the committee stage. This legislative development follows its passage in the National Assembly last week, marking a significant step for the Namibia Petroleum Bill 2025 committee stage. The proposed bill is designed to introduce substantial changes to the country's foundational Petroleum Act of 1991.

According to Modestus Amutse, the Minister of Industries, Mines and Energy, who spoke to New Era, the National Assembly has completed the first phase of the bill's review. The next critical step involves a second reading by a house committee, where individual clauses will be scrutinized, and members will have the opportunity to propose contributions. Following this detailed review, the National Assembly will address any questions and comments before submitting a final report for presidential assent.

A central element of the current amendments, particularly those related to upstream petroleum, involves a significant restructuring of regulatory authority. The proposed legislation formalizes the transfer of oversight of oil and gas activities from the Ministry of Industries, Mines and Energy to the Upstream Petroleum Unit (UPU), which is already established and operating under the Office of the President. This change directly impacts Namibia upstream petroleum regulation.

The upstream oil and gas sector encompasses the initial phases of the petroleum value chain, focusing on the exploration, discovery, and extraction of raw hydrocarbons from subterranean or subsea reservoirs. While the initial focus of the first reading was on this upstream segment, Minister Amutse confirmed that the legislative process is still ongoing and also includes amendments pertaining to downstream petroleum. The downstream sector involves the later stages, such as refining crude oil, processing natural gas into finished products, and their subsequent distribution and retail. This comprehensive Petroleum Act 1991 amendment Namibia aims to reshape the entire sector.

The proposed shift in authority has prompted considerable apprehension among opposition parties within the National Assembly, who fear that the amendments could lead to an undue centralization of control over the petroleum sector within the Office of the President. This concern about Namibia oil gas sector control has been a focal point of debate.

Independent Patriots for Change Member of Parliament, Michael Mulungu, previously articulated his view that the bill would effectively position the president as the sole operator of the oil and gas industry. Similarly, Job Amupanda, leader of Affirmative Repositioning, raised questions regarding parliamentary accountability, suggesting that members would no longer be able to directly question the Minister of Industries, Mines and Energy on industry matters, and would face challenges in addressing the President. To address some oversight, the Upstream Petroleum Unit Namibia would be mandated to report its operations to Parliament twice annually.

Minister Amutse has expressed optimism regarding the legislative timeline for the Petroleum (Exploration and Production) Amendment Bill, 2025. He indicated his hope that the entire amendment process, encompassing both upstream and downstream aspects, will reach its conclusion before the end of the current year. This timeline underscores the urgency and importance placed on finalizing these significant changes to Namibia's petroleum regulatory framework.

Lawyers and compliance officers advising clients in Namibia's upstream oil and gas sector must closely monitor the finalisation of this bill, as it proposes a significant shift in regulatory authority to the Upstream Petroleum Unit under the Office of the President, potentially altering compliance requirements and political risk assessments for operations.

Source: Reporting based on information from New Era.