Prime Minister Elijah Ngurare has defended plans to place Namibia’s proposed Upstream Petroleum Unit in the Presidency, arguing that the country’s emerging oil and gas sector requires direct oversight from the highest level of government.
Speaking during debate on the Petroleum (Exploration and Production) Amendment Bill in the National Assembly on Tuesday, Ngurare said concerns that the move would weaken accountability were unfounded, insisting that Parliament would retain full oversight of the sector.
The amendment bill seeks to establish an Upstream Petroleum Unit in the Presidency and transfer certain powers currently exercised by the Minister of Industries, Mines and Energy.
Ngurare said the proposed arrangement would strengthen strategic coordination and enable government to respond more effectively to the opportunities and challenges presented by Namibia’s petroleum discoveries.
“The Amendment Bill does not create a structure operating outside the reach of Parliament. On the contrary, it establishes a clear mechanism through which Parliament retains oversight over decisions and activities undertaken within the Presidency concerning upstream petroleum governance,” he said.
According to the Prime Minister, the Minister responsible for Presidential Affairs would be required to account to Parliament through reports, parliamentary questions and other oversight mechanisms.
He further argued that the bill introduces additional transparency measures, including annual reporting to the National Assembly on petroleum royalty remissions, deferrals and refunds.
“With regard to transparency, all fears about the absence of fiscal transparency are allayed by the clause in this Amendment Bill that all remissions, deferrals, or refunds of petroleum royalties be reported annually to the National Assembly by 30 June through a designated Minister or the Prime Minister,” Ngurare said.
The Prime Minister rejected suggestions that assigning petroleum oversight responsibilities to the Presidency reflected a lack of confidence in existing institutions or exposed the President to unnecessary legal risks.
He said the Constitution empowers the President to establish structures necessary for the effective administration of government functions.
“Oil and gas are our new precious petroleum resources that can make or break this country. These amendments therefore seek to bring about a robust, modern and transparent legal framework that can guide our upstream petroleum sector responsibly and efficiently. By placing the Upstream Petroleum Unit in the Presidency, the development of these petroleum resources receives the highest and undivided attention from the highest Office in the Land,” Ngurare said.
The proposed amendments come as Namibia prepares for potential commercial oil production later this decade following a series of major offshore discoveries.
