Confidential memo gives insight into Ithete’s axing

A highly confidential memo from the Upstream Petroleum Unit in the president’s private office could be the reason why former deputy prime minister and industries, mines and energy minister Natangue Ithete was fired on Sunday.The document, dated 22 July 2025 and addressed to President Netumbo Nandi-Ndaitwah, raises what it describes as “a matter of serious regulatory concern” over the third renewal of Petroleum Exploration Licence (PEL) 37 granted to Paragon Oil & Gas Ltd.The memo outlines how Paragon Oil & Gas, previously a local partner to Tullow Oil PLC, lost its rights to PEL 37 in 2021 after allegedly failing to respond to an official notice from the mines and energy ministry.“At the end of its second renewal period on 27 March 2021, Tullow relinquished its interest and did not seek a third renewal,” the memo states.“Paragon failed to respond within the stipulated timeframe, and the licence was lawfully cancelled.”Tullow Oil, which had operated PEL 37 in the Walvis Basin since 2013, exited Namibia in March 2021 after completing the second renewal phase.The company decided not to pursue further exploration following the non-commercial results of the 2018 Cormorant-1 well, which encountered only traces of hydrocarbons. With the well deemed unviable for development, Tullow formally relinquished its Namibian assets and withdrew from the country.Licence renewal Paragon Oil & Gas entered the picture as Tullow Oil’s local Namibian partner on Petroleum Exploration Licence 37 (PEL 37).Under Namibia’s petroleum regulations, foreign operators such as Tullow are required to partner with a locally owned company. In this case, Paragon Oil & Gas Ltd – a subsidiary of Paragon Investment Holdings, chaired by businessman Desmond Amunyela – held a minority equity interest in the licence through a joint venture structure.When Tullow relinquished its stake in March 2021 following the non-commercial results of the Cormorant-1 exploration well, Paragon became the remaining licensee. According to the memo, the mines and energy ministry formally invited Paragon to indicate within 30 days whether it intended to assume operatorship or renew the licence on its own.However, according to government records and the July 2025 memo from the president’s office, Paragon failed to respond within the prescribed period, resulting in the licence being automatically cancelled under the Petroleum (Exploration and Production) Act.Paragon subsequently made several unsuccessful appeals between 2021 and 2024 to have the licence reinstated, arguing that it still held a residual interest. Each appeal was rejected in writing by the ministry on legal grounds – until, reportedly, July 2025, when then minister Ithete reportedly approved a third renewal of PEL 37, effectively reviving a licence that had lapsed for more than two years, according to the memo. Legal groundsThat decision – taken without consulting the Upstream Petroleum Unit according to the memo – reportedly triggered the regulatory alarm raised in the confidential memo, which later reached President Netumbo Nandi-Ndaitwah and has since been linked to Ithete’s dismissal.According to the memo, Paragon made “several approaches to the ministry seeking reinstatement of the expired licence”, all of which were “consistently rejected in writing” by the ministry under then minister Tom Alweendo, citing the Petroleum (Exploration and Production) Act of 1991 and the absence of any legal grounds for renewal.However, the memo states that on 25 June 2025, Paragon presented the issue to Ithete. “Despite the previously established legal position and repeated rejections,” it reads, “the minister approved the extension into a third renewal on 2 July 2025, effectively reinstating a licence that had expired over two years prior.”The document warned that the decision was made “without prior consultation with the Upstream Petroleum Unit in the Office of the President”, the body mandated to ensure policy and regulatory coherence in Namibia’s petroleum sector.The memo outlines several implications of the decision. “There are other companies with expired licenses under similar circumstances who were not granted extensions. This decision creates a precedent that may be perceived as arbitrary or preferential,” it reads. Formal review The memo also cautioned that “the lack of consultation and disregard for prior legal decisions undermines the principles of fairness, due process and institutional consistency.”The document recommended that “the extension granted to Paragon Oil & Gas Ltd for PEL 37 be revoked, as it contravenes established legal processes and regulatory precedent.” It further urged that “a formal review of the decision-making process be initiated to ensure accountability and prevent recurrence” and that the Office of the President reaffirm its “commitment to transparency, consistency and institutional coordination in upstream petroleum governance”.The report concludes with assuring the president that “we remain at Your Excellency’s disposal for any further clarification or guidance required on this matter.”Sudden exit President Nandi-Ndaitwah dismissed Ithete from Cabinet on Sunday, 26 October, without offering a public explanation. However, speaking to mines and energy ministry staff on Monday, she admitted that she acted after discovering that Ithete had signed off renewals for a petroleum exploration licence that had already expired. “I told the minister, ‘Let me first understand – there should be no renewal, there should be no oil block giving, unless we consult one another'", Nandi-Ndaitwah said.The Presidency has not issued any formal statement in response to the contents of the July memo.However, businessman Desmond Amunyela told Namibian Sun on Sunday that it was “news to him” that Ithete’s fate was because of Paragon’s licence. He said the licence was issued in 2011 and has been renewed multiple times by the ministry, “consistent with the licensing conditions.” He also told The Namibian on Tuesday that he was not aware of any moratorium on renewals, adding, “We have been compliant since 2021.”Alweendo, when contacted for comment yesterday, declined to speak on the matter.

Confidential memo gives insight into Ithete’s axing

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Namibian Sun 2025-12-16

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Confidential memo gives insight into Ithete’s axing

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Namibian Sun 2025-12-16

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