The proposed amendments to the Petroleum (Exploration and Production) Act of 1991 set out an expanded, centralised mandate for a new Upstream Petroleum Unit, which will oversee licensing, regulation, data management, and compliance across Namibia’s oil and gas sector.
Under the Petroleum (Exploration and Production) Amendment Bill, the Unit will be responsible for regulating, managing and coordinating all upstream petroleum activities, including exploration, appraisal, development, production and decommissioning.
It will issue and manage petroleum licences, oversee petroleum agreements and monitor compliance by operators, contractors and subcontractors.
A key function of the Unit will be the enforcement of health, safety and environmental standards, alongside oversight of optimal utilisation of resources and infrastructure.
The Bill authorises the Unit to conduct inspections and audits and to take regulatory action where non-compliance is identified.
The Unit will also assume responsibility for managing upstream petroleum data, including establishing and maintaining a national data repository.
This includes receiving, storing and analysing geological, technical and operational information, as well as forecasting economic performance in the petroleum sector.
In addition, the Unit will promote planned, sustainable and cost-efficient petroleum activities and advance local content and participation in line with national laws.
It will advise the President on national petroleum activities and issue an annual public report detailing upstream petroleum operations and performance.
Operationally, the Unit will be headed by a Director-General, supported by a Deputy Director-General and staff members appointed under the Public Service Act. The Director-General will be responsible for granting licences and ensuring that the Unit’s functions are carried out in line with the objectives of the Act.
The amendments also strengthen governance and accountability through updated conflict-of-interest provisions, prohibiting officials and staff members involved in petroleum regulation from holding financial interests in licence-holding companies.
Senior officials will be required to declare their assets and liabilities, with penalties of up to N$20 000 or up to 5 years’ imprisonment for contraventions.
Transitional provisions ensure that all existing licences, approvals and applications remain valid, preventing disruption to ongoing petroleum operations.
The Amendment Act will come into operation on a date to be determined by the President and published in the Government Gazette.
