Editorial: Oil wealth demands backbone

The real test of Namibia's petroleum ambitions will not be whether oil is found in commercial quantities. It will be whether government has the resolve to govern the industry on its own terms.

Energy minister Modestus Amutse's declaration that Namibia will not rewrite its petroleum laws or waive statutory obligations to satisfy foreign oil companies is a statement that should resonate far beyond the energy sector. It is about sovereignty.

Too often, African countries have entered negotiations with multinational corporations from a position of insecurity, fearing that insisting on fair terms would drive investors elsewhere. The result has been contracts that enriched companies while leaving host nations with little more than environmental liabilities and unfulfilled promises of prosperity.

Namibia has an opportunity to chart a different course. The minister's observation that some companies willingly comply with stringent regulations in Europe but seek exemptions in Namibia raises an uncomfortable question. Why should African countries be expected to accept standards that would never be tolerated in developed economies?

The answer, unfortunately, lies in a long-standing perception that African governments can be pressured into making concessions because they are eager for investment. That mindset must be challenged.

Foreign investment is essential. Namibia does not possess the capital or technology to develop its offshore resources alone. International oil companies are partners in that journey, and they deserve a stable, transparent and predictable investment environment. But partnership is not subservience.

It is also encouraging that government is reviewing petroleum legislation before production begins in earnest. Updating laws to reflect a changing global energy landscape is good governance. 

But when everything is said and done, oil beneath Namibia's seabed belongs to the people of Namibia - not to the companies that extract it. Investors should earn a fair return. Namibia must do the same.