Namibia’s new Petroleum (Exploration and Production) Amendment Bill of 2025 aims to update a petroleum law enacted more than three decades ago, when the country had no commercial oil discoveries.
With multiple world-class finds now reshaping the national energy landscape, the government says the legal framework must be strengthened to match the scale of investment and complexity of modern offshore operations.
The amendment seeks to ensure more precise regulation, stronger oversight and greater transparency as Namibia moves closer to becoming a petroleum-producing nation.
At the heart of the reform is the establishment of the Upstream Petroleum Unit, a new specialised regulator housed in the Office of the President.
This Unit replaces the old structure under the 1991 Act, where the Minister of Mines and Energy and the Commissioner for Petroleum Affairs jointly supervised the sector.
The 1991 model was suited for a small, early-stage industry where onshore surveys and shallow-water reconnaissance were typical.
It was never intended to govern deepwater drilling programmes involving supermajors, billion-dollar investments or the technical demands of frontier offshore petroleum systems.
Interim minister Frans Kapofi, who tabled the Bill in parliament, emphasised this shift.
“Namibia stands at a transformative moment in its economic and energy journey,” he told lawmakers. “The recent world-class oil discoveries in our offshore basins have positioned our country as an emerging energy hub on the African continent. This moment calls for a robust, modern and transparent legal framework.”
Under the proposed changes, the Director-General of the Upstream Petroleum Unit becomes the principal regulator.
This position will oversee licensing, renewals, compliance, data management and control of upstream operations.
The Deputy Director-General will supervise day-to-day technical work, manage inspectors and ensure that operational decisions are based on scientific and engineering standards.
This separation of political authority from technical regulation is designed to reduce delays and uncertainty that the 1991 Act never anticipated.
Transparency is one of the most significant departures from the 1991 framework.
Kapofi told the National Assembly that any remission, deferral or refund of petroleum royalties must now be reported to parliament annually by 30 June.
The 1991 Act carried no such obligation. It allowed the executive to exercise discretion over revenue adjustments without mandatory reporting.
The amendment, therefore, places petroleum revenue under direct legislative oversight, ensuring that decisions affecting public funds are disclosed and can be debated.
Ethical governance provisions have also been expanded. While the 1991 Act included minimal conflict-of-interest rules, the amendment extends these to all inspectors and staff of the Upstream Petroleum Unit.
Senior officials, including the Director-General and Deputy Director-General, will be required to declare their assets and financial interests to the President.
These provisions are meant to safeguard integrity in a sector where confidentiality, commercial sensitivity and financial stakes are high.
The Bill also modernises outdated terminology, repeals the role of the Commissioner for Petroleum Affairs, and aligns institutions so that the Presidency, the Ministry of Finance, the Ministry of Mines and Energy, and other technical bodies coordinate more effectively.
This alignment is intended to prevent fragmented decision-making, a structural weakness of the 1991 Act.
Another critical feature of the amendment is its transitional protection for investment.
Kapofi told the House that all existing licences, agreements and approvals remain valid, and all ongoing applications will transition to the new regulatory structure without disruption.
Given the scale of continuing exploration by companies such as TotalEnergies, Shell and Galp, this continuity is essential for investor confidence.
It ensures that Namibia’s regulatory changes do not interfere with ongoing drilling programmes, appraisal operations, or data submissions.
By contrast, the 1991 Act was built for an early-stage sector. It assumed modest activity, limited seismic work, occasional drilling and straightforward licence administration.
Its institutions were small, its obligations narrow, and its powers thinly spread across ministerial offices. It did not impose strict transparency requirements, did not anticipate deepwater development, and did not include mechanisms for modern governance such as mandatory asset declarations or annual reporting to parliament.
Kapofi acknowledged this gap directly.
“This Amendment updates the 1991 Act to reflect contemporary realities,” he said. “It enhances coordination, ensures accountability and strengthens Namibia’s position as a credible and competitive petroleum jurisdiction.”
The Bill’s introduction comes as Namibia prepares for the possibility of first production later in the decade. As significant offshore discoveries advance toward appraisal and long-term development planning, the country needs a regulatory system that can handle environmental reviews, fiscal modelling, operator compliance, complex licensing arrangements and the technical demands of frontier deepwater production.
The Amendment Bill is therefore more than a legal update—it marks Namibia’s transition from an exploration-focused framework to a governance model built for future production.
It signals a shift from a sector once defined by potential to one shaped by fundamental, transformative discoveries.
Kapofi closed his address to parliament by calling the reforms a forward-looking step.
“This Bill reflects the maturity of our governance institutions and our readiness to responsibly manage the opportunities that petroleum development brings,” he said. The debate and adoption process now lies with the National Assembly, where lawmakers will consider the country’s next major legal foundation for the oil and gas sector.
