Namibia’s National Assembly has approved the Petroleum (Exploration and Production) Amendment Bill at second reading, with 50 lawmakers voting in favour, clearing the way for further scrutiny of proposed changes to the country’s petroleum regulatory framework.
The vote, held on Tuesday, recorded no votes against the Bill and no abstentions, allowing it to proceed to the committee stage for detailed examination.
“Those in favour of the Bill are 50, those against are none, and there are no abstentions. The Bill is therefore approved,” Speaker of the National Assembly Sarah Kuugongelwa-Amadhila said.
The Bill, introduced by Minister of Industries, Mines and Energy Modestus Amutse, proposes transferring certain responsibilities currently exercised by the minister and the Petroleum Commissioner to the President and a proposed Upstream Petroleum Unit (UPU) within the Office of the President.
The proposed changes would restructure the administration of Namibia’s petroleum sector, including the exercise of certain regulatory and decision-making powers.
The Bill has also prompted debate over petroleum revenue management, licensing procedures, public accountability and the role of government institutions in overseeing the industry.
One of the proposed amendments would change the finance minister’s role in decisions involving petroleum royalty remissions, refunds and deferrals from concurrence to consultation.
Lawmakers have raised concerns that the change could weaken financial oversight of petroleum revenue.
Other issues raised during parliamentary discussions include the exercise of discretion in awarding petroleum licences, safeguards against conflicts of interest and responsibility for environmental restoration where petroleum companies fail to meet their obligations.
MPs have also called for enforceable local-content requirements to ensure Namibian businesses and workers benefit from petroleum exploration and production activities.
The Bill will now proceed to the committee stage, where lawmakers will examine its provisions clause by clause and may propose amendments.
It will then return to the National Assembly for a third reading and final vote before being referred to the National Council for consideration.
Following approval by both houses of Parliament, the legislation will be submitted to the President for assent.
The proposed amendments come as Namibia prepares for major investments in its offshore oil and gas sector, with several companies advancing exploration, appraisal and development activities.
TotalEnergies is targeting a final investment decision (FID) on its Venus oil project in the Orange Basin before the end of 2026.
The proposed development is designed to produce approximately 150,000 barrels of oil per day, although negotiations with the government over development and fiscal terms remain ongoing.
Rhino Resources and its partners are targeting a potential investment decision for a development in Petroleum Exploration Licence (PEL) 85 towards the end of 2027, subject to further appraisal and development planning.
Onshore explorer ReconAfrica has also indicated that progress towards an investment decision will depend on the outcome of its ongoing testing activities.
The proposed legislative changes are expected to influence how Namibia administers petroleum licensing, regulatory oversight and certain revenue-related decisions as the country moves towards potential commercial oil production.
