Petroleum Bill Advances Amidst Concerns Over Centralized Control

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Windhoek:The Petroleum (Exploration and Production) Amendment Bill, 2025, has successfully passed its second reading in the National Assembly. This legislation, which seeks to amend the Petroleum (Exploration and Production) Act of 1991, has sparked debate due to concerns that it may centralize control of the petroleum sector in the Office of the President.

According to NAMPA, the bill's next step involves proceeding to the committee stage for detailed examination before it returns to the National Assembly for final approval. The proposed amendments intend to create an Upstream Petroleum Unit within the Office of the President and shift certain powers from the Minister of Industries, Mines and Energy, as well as the Commissioner for Petroleum Affairs, to the President and officials within the new unit.

Supporters, including members of the Swapo Party, argue that these changes will enhance the coordination and management of Namibia's petroleum resources. However, opposition parties and critics express concerns that the shift in regulatory functions to the Presidency could reduce institutional oversight and accountability.

The bill, which garnered 50 votes in favor with no opposition, has elicited mixed reactions. While some members of Parliament see it as a means to boost investment and governance, others fear it could weaken ministerial and parliamentary oversight. Notably, during the contentious parliamentary session, opposition members walked out over disagreements regarding the legislation and voting procedures.

Among the critics, Independent Patriots for Change MP Nelson Kalangula cautioned that placing the Upstream Petroleum Unit under the Presidency might undermine ministerial accountability. Social commentator Sam Kauapirura and lawyer Natjirikasora Tjirera also voiced concerns about potential threats to transparency and parliamentary scrutiny.

Despite these concerns, Swapo MP Ruthy Masake defended the amendment, stating it would promote accountability, investor confidence, and long-term economic growth. Amutse, another advocate for the bill, argued that centralized oversight is essential to manage the oil and gas sector amid volatile global energy markets.

The Namibia Economic Freedom Fighters (NEFF), represented by deputy president Kalimbo Iipumbu, also supported the bill. Iipumbu, the sole opposition member to remain in the chamber for the vote, emphasized that Namibia should view its petroleum resources as a strategic national economic asset. He dismissed the notion that supporting the bill equates to surrendering the nation's resources to the political elite, asserting that NEFF's position is rooted in the belief that political independence must be accompanied by economic control.