Industries, mines, and energy minister, Frans Kapofi has proposed amending the Petroleum Exploration and Production Act, 1991 to shift several key powers in the petroleum sector from the ministry to the Office of the President. The proposal tabled by Kapofi in Parliament yesterday, aims to transfer some responsibilities from the Minister of Industries, Mines, and Energy to the President, as well as to the Director-General of a newly established Upstream Petroleum Unit to be established under the President’s Office.
According to Kapofi’s motion, the amendment will also move specific powers from the Commissioner for Petroleum Affairs to the Deputy Director-General of the new unit. Yesterday’s proposal outlines the creation, roles, and duties of both the Director-General and the Deputy Director-General of the Upstream Petroleum Unit.
“The Upstream Petroleum Unit will be responsible for overseeing oil and gas exploration and production activities. The proposed changes aim to clarify and redefine several legal terms related to petroleum management and ensure smoother coordination within the sector,” said Kapofi.
Speaking in the National Assembly, Kapofi requested leave to introduce the amendment as an urgent measure. The proposed change will remove the industries, mines and energy minister’s authority and formally places it under the Office of the President.
“The powers being transferred include the right to grant, renew, or revoke oil and gas exploration licences and production rights functions that have recently been the subject of executive disputes,” said Kapofi. Following her inauguration in March, President Netumbo Nandi-Ndaitwah said the country’s oil and gas industries would be managed in a way that maximises their benefits for all Namibians.
“Yes, you have given powers to this President, and she is now using them for the benefit of the people,” she said. Nandi-Ndaitwah emphasised that government’s vision is to ensure Namibia’s natural resources are enjoyed by all citizens.
“It was necessary that such projects fall under the President to ensure the industry is structured in a way that promotes value addition,” she added. In 2022, major oil companies made an announcement that sent ripples across the global energy markets: Namibia had struck oil, with an estimated value of US$11 billion in potential revenue.
This discovery promises to change Namibia’s economic landscape once production commences. However, the recent discoveries also raise questions about the long-term effects on Namibia’s environment, its people, and the country’s place in the global energy market. It is expected that Namibia’s burgeoning oil industry will create a range of job opportunities, from exploration and drilling to transportation, refining, and administrative support. This could help reduce high unemployment which is a pressing issue, particularly among the youth.
Furthermore, the demand for skilled workers in the energy sector could encourage improvements in education and vocational training, thereby boosting Namibia’s long-term human capital development. –pmukokobi@nepc.com.na