Namibia won't bend oil laws for foreign firms - Amutse

Industries, Mines and Energy Minister Modestus Amutse says Namibia will not dilute its petroleum laws or grant special concessions to foreign oil companies, arguing that some investors demand preferential treatment in Namibia despite complying with stricter regulations elsewhere.

Speaking on NTV talk show The Agenda, airing on Sunday, Amutse said negotiations with some petroleum companies become difficult when they seek exemptions from legal obligations that apply to all investors.

"Often, what happens is that a company comes with its own preferred conditions, while we stand firm in protecting the interests of the Namibian people. If we cannot reach agreement, that is sometimes when those companies begin raising concerns or making allegations about policy uncertainty in Namibia," he said.

Amutse questioned why companies that readily comply with stringent regulatory regimes in Europe expect Namibia to lower its standards.

"Interestingly, some of the companies making these claims in Namibia fully comply with much stricter laws in other jurisdictions, such as Europe. They are willing to comply there, but when they come to Namibia, they expect different treatment," he said.

He added that Namibia would not compromise its laws simply because it is an emerging oil producer.

"You may find that in Europe the same company operates under much stricter requirements, with a significantly higher regulatory bar than we have here. Yet when it comes to Namibia, because we are an African country, they expect the standards to be lowered to almost nothing," he said.

Amutse said government has both a constitutional and moral obligation to ensure the country's petroleum resources benefit present and future generations.

"We were elected to protect the interests of today's citizens as well as future generations," he said.

The minister rejected claims that uncertainty in Namibia's petroleum regime is delaying final investment decisions (FIDs), insisting the existing legal framework already provides sufficient certainty for investors while safeguarding the state's interests.

He revealed that amendments to the Petroleum Products Act are about 99% complete and are undergoing final consultations before being tabled in Parliament later this year.

According to Amutse, the reforms incorporate views gathered during extensive public consultations and have already been vetted by the Attorney General's Office. The legislation, originally enacted shortly after independence, is being updated to reflect changes in the global petroleum industry.

Despite the review, he maintained that Namibia's current petroleum legislation is broadly in line with that of established oil-producing countries.

"I have compared what we have with different countries, and there are not many differences," he said.

Amutse said the law already provides certainty on petroleum exploration licences, investment protection and the repatriation of profits. Disputes, he argued, arise not because the legal framework is unclear, but because some companies seek to be exempted from obligations such as royalties.

"For example, a company might say, 'I want to invest in your country, but I don't want to pay royalties,'" he said.

"Our laws clearly provide for royalties, export levies and taxes. Those provisions exist because Namibia must derive value from its petroleum resources."

Responding to concerns that policy proposals such as the New Equitable Economic Empowerment Framework (NEEEF) could deter investors, Amutse said businesses should distinguish between proposed legislation and laws that are already in force.

"I would encourage people to rely on existing laws rather than proposals," he said, noting that policy proposals remain subject to public debate and parliamentary approval, while exploration licences are issued under the existing statutory framework.

He said some companies accept Namibia's legal requirements when applying for exploration licences but seek more favourable terms once projects move closer to final investment decisions.

"Instead of paying the royalty required under the law, they may later ask for a different arrangement. Our responsibility is to uphold the laws of the Republic of Namibia because that is the oath we took," he said.

According to Amutse, it is these disagreements over commercial terms - not deficiencies in Namibia's petroleum legislation - that often give rise to public complaints by some investors. - [email protected]