Windhoek: Minister of Industries, Mines and Energy, Modestus Amutse, on Thursday defended the decision to centralise oversight of Namibia's burgeoning oil and gas sector under the Presidency, as outlined in the Petroleum Amendment Bill. Amutse emphasized that this move is strategically necessary in the context of an increasingly volatile global energy market, aiming to position Namibia to effectively manage a potentially transformative industry.
According to Namibia Press Agency, the proposed Bill seeks to amend the Petroleum (Exploration and Production) Act of 1991, introducing a shared oversight and management model for the upstream oil and gas industry. Amutse explained in the National Assembly that the amendments are designed to foster a forward-looking legal framework that will enable Namibia to harness the full potential of its oil sector.
The legislation proposes a tripartite oversight and management structure, which would include the Office of the President, the Upstream Petroleum Unit, and the Ministry of Industries, Mines and Energy. This framework is intended to ensure transparency, accountability, and efficiency, supported by key state institutions such as the Anti-Corruption Commission, the Office of the Auditor General, the judiciary, and law enforcement agencies.
Amutse further argued that centralised oversight would bolster Namibia's strategic position in international energy negotiations. By projecting a unified national strategy, Namibia could enhance its bargaining power, with the President's oversight aligning resource management with broader development goals like infrastructure projects, job creation, and energy transition strategies, all aimed at sustainable development and long-term prosperity.
The Bill also proposes the creation of a specialised Upstream Petroleum Unit, to be led by a Director-General and housed under the Office of the President. However, this proposed centralisation has been met with criticism from opposition parties. Independent Patriots for Change Member of Parliament Milunga Elvis Lizazi contended that the Bill could undermine constitutional principles by blurring the separation of powers between the executive and legislature.
Lizazi expressed concerns that the legislation would effectively remove upstream petroleum oversight from the Ministry of Industries, Mines and Energy, whose minister is accountable to Parliament. He argued that this move could undermine the principle of representative democracy, as updates to the National Assembly would be presented by officials who are not elected representatives of the people.
Lizazi urged Speaker Saara Kuugengelwa-Amadhila to direct the executive to reconsider the amendment Bill and allow for further consultations, highlighting the need for a more inclusive approach to the proposed legislative changes.