Ministerial oil control risks ‘delays, political pressure’

Energy, oil and gas lawyer Shakwa Nyambe has warned that Namibia’s petroleum sector could face bureaucratic delays and political pressure if ministerial control over licensing, approvals and regulatory supervision continues.

Nyambe, a managing partner at SNC Incorporated, argues that while the current governance framework was adequate during decades of limited exploration activity, it is no longer fit for purpose as Namibia moves toward large-scale petroleum production following major offshore discoveries.

According to his analysis of the proposed Petroleum (Exploration and Production) Amendment Bill, concentrating operational decision-making in the hands of the Minister of Industries, Mines and Energy exposes the sector to regulatory inefficiency and undermines investor confidence.

“As the petroleum industry expands, ministerial control over licensing and approvals becomes increasingly susceptible to delays, administrative bottlenecks and perceptions of political influence,” Nyambe notes.

He highlights that in jurisdictions transitioning from exploration to production, slow or politicised regulatory processes have delayed final investment decisions and driven investors to more predictable environments.

Proposed governance reforms

The amendment bill proposes creating a dedicated Upstream Petroleum Unit housed in the Office of the President, transferring most operational regulatory powers from the minister.

Under this framework, a director-general of the proposed unit would handle day-to-day licensing authority, supported by a deputy director-general who would replace the current petroleum commissioner.

“The Petroleum Amendment Bill follows international best practice by separating policy oversight from technical regulation,” Nyambe’s analysis states.

The minister would retain responsibility for overall mines and energy policy but relinquish operational licensing authority, removing the perception that political considerations could override technical merit.

Depoliticising decision-making, not centralising power

Nyambe stresses that the reforms are not a power grab by the Presidency but a deliberate effort to insulate regulatory decisions from political interference.

“The director-general will be a specialised technocrat, appointed on the basis of expertise and integrity, tasked with implementing petroleum laws objectively and efficiently,” he argues.

Strategic oversight would remain at the highest level of government, with the Upstream Petroleum Unit under the Presidency to ensure coordination across revenue management, industrialisation, environmental protection, and foreign relations.

Nyambe notes that oil and gas development intersects with multiple state functions, making presidential convening power a practical necessity rather than a political indulgence.

Learning from international experience

Nyambe draws lessons from countries such as Senegal, Sierra Leone, Ghana and Nigeria. There, governance reforms were introduced after commercial discoveries exposed weaknesses in ministerial-led regulatory models.

“Namibia is mirroring frameworks adopted in several petroleum-producing states, where dedicated regulators manage technical and commercial decisions while remaining accountable to the state,” he says.

The proposed amendments are also designed to guard against the resource curse.

Nyambe warns that without strong, transparent and depoliticised institutions, petroleum wealth can exacerbate corruption, inequality and public mistrust.

Elevating accountability through the presidency

Under the bill, authority over royalties would shift from the minister to the president, a move described by Nyambe as enhancing accountability rather than concentrating power. “The president’s role is akin to that of a trustee acting in the national interest,” he says.

The Upstream Petroleum Unit would also have a statutory mandate to promote local content and citizen participation, with annual public reporting obligations. Nyambe emphasises that embedding these duties in law ensures that employment creation, skills transfer and local participation are treated as core regulatory responsibilities rather than optional policy goals.

Costs of regulatory delays

Nyambe cautions that international oil companies prioritise regulatory certainty and efficiency when allocating capital. “With multiple high-value developments at stake, prolonged uncertainty or slow decision-making could deter investors, delay final investment decisions, and ultimately postpone the benefits Namibians expect from oil and gas,” he warns.

Every delay in achieving first oil represents a direct opportunity cost, both in foregone revenue and public confidence, he notes.

Nyambe urges parliament to prioritise the amendment bill, stressing that indecision could stall projects such as the Venus discovery and weaken Namibia’s competitive position.

“Namibia cannot afford regulatory inertia at this stage,” he concludes. “Passing the amendments would signal that the country is serious about governing its petroleum resources efficiently, transparently and in the long-term public interest.”

Opposition voices concern

Not all parties agree.

The Independent Patriots for Change (IPC) has formally rejected the bill, warning that it concentrates critical upstream petroleum powers in the Presidency and undermines constitutional accountability. IPC president Dr Panduleni Itula said the transfer of licensing, royalty and regulatory authority to a presidentially controlled unit risks weakening parliamentary oversight.

“The Venus and Mopane discoveries present generational opportunities. We want first oil to flow, but what we do not want is for first oil to become the first oil-related scandal,” Itula said. He cautioned that presidential appointees of the Upstream Petroleum Unit would not be directly answerable to parliament like ministers, increasing the risk of arbitrary decision-making, politicisation and legal challenges.

The IPC also warned that governance uncertainty could deter investors and slow project timelines. Final investment decisions are expected by late 2026, with first oil projected around 2029–2030. Drawing parallels to past governance failures in the fishing sector, the party said secrecy and concentration of power heighten corruption risks rather than prevent them.