Leadership instability and governance concerns at the National Petroleum Corporation of Namibia (NAMCOR) are raising questions about the institution’s readiness to manage large-scale petroleum developments as Namibia’s offshore oil sector moves closer to potential production.
Director of the Institute for Public Policy Research (IPPR), Graham Hopwood, said the national oil company has faced increasing scrutiny over management turnover and transparency challenges at a time when Namibia is attracting significant global interest following major offshore discoveries.
According to Hopwood, NAMCOR has been operating under several acting managing directors since the dismissal of former chief executive Immanuel Mulunga in 2023, a situation that has highlighted governance and institutional capacity concerns.
He also pointed to delays in financial reporting, noting that the company has not published publicly available annual financial statements since the 2021/22 financial year, raising questions about transparency and accountability.
Hopwood said the frequent leadership changes, combined with perceptions of political interference, could undermine NAMCOR’s ability to effectively manage complex and high-value petroleum projects.
“NAMCOR has also been frequently in the headlines, unfortunately often for negative reasons. Leadership turnover has been high since the suspension and dismissal of former managing director Immanuel Mulunga in 2023,” Hopwood said.
“Since then, there have been multiple acting managing directors, with another appointment announced recently. While assurances have been given that a permanent appointment process is underway, the situation highlights governance and capacity challenges within the national oil company.”
He said environmental oversight is another area that requires attention as offshore drilling activities expand in Namibia’s Orange Basin.
Hopwood noted that monitoring offshore petroleum operations can be difficult because drilling takes place between 200 and 300 kilometres from the coast and several kilometres beneath the seabed.
He said limited transparency around environmental impact assessments, concerns that the Environmental Management Act may be outdated, and uncertainty over spill preparedness and liability frameworks have raised questions about the country’s readiness to manage potential environmental risks.
“Currently, transparency around environmental impact assessments is limited, and there are doubts about whether the Environmental Management Act is fit for purpose,” Hopwood said.
“Questions also remain about spill preparedness, liability, remediation responsibilities, and the long-term environmental and fiscal costs of potential accidents.”
Debate has also emerged around the proposed Petroleum Amendment Bill currently before Parliament, with Hopwood warning that some provisions could centralise decision-making and distance elected representatives from key decisions on upstream petroleum activities.
He said Namibia still has a limited window to strengthen governance systems, transparency and regulatory capacity before major petroleum projects move into the development phase.
Hopwood added that communities, particularly those in areas hosting onshore support infrastructure for offshore operations, must be consulted and should see clear economic benefits from the country’s oil developments.
