Petroleum amendment bill restructures upstream regulation, retains core safeguards

Namibia’s proposed Petroleum (Exploration and Production) Amendment Bill, 2025, represents the most extensive reworking of the country’s upstream petroleum governance framework since the original Act was enacted in 1991.

It shifts how licensing, compliance, data management and oversight are organised, while retaining several foundational principles of the existing law.

Under the current Petroleum (Exploration and Production) Act, upstream petroleum administration is exercised through a ministry-centred model. Authority flows from the Minister of Industries, Mines and Energy to a Commissioner for Petroleum Affairs and a Chief Inspector, supported by designated ministry officers. Regulatory powers are spread across the Act, responsibilities are dispersed, and there is no single statutory body with a consolidated upstream mandate.

The proposed amendments dismantle this structure and replace it with an Upstream Petroleum Unit, supported by a Director-General, Deputy Director-General and staff members.

The Bill deletes the definitions of “Minister”, “Commissioner” and “officer” from the Act. He introduces new definitions for “Unit”, “Director-General”, “Deputy Director-General”, “staff member”, “petroleum affairs” and “upstream petroleum activities”.

In practical terms, petroleum administration moves from a commissioner-driven ministerial system to a unit-based regulatory framework with explicitly defined functions.

Licensing authority and internal decision-making

A central change lies in how regulatory authority is exercised. Under the old Act, licensing decisions are tied to ministerial powers administered through the Commissioner.

The amendments make the Director-General of the Upstream Petroleum Unit responsible for granting licences, while the Deputy Director-General is tasked with issuing those licences and managing operational processes. This introduces a more transparent internal workflow, separating strategic approval from administrative execution.

For the first time, the Act would contain a single, consolidated list of upstream regulatory functions. The Bill mandates the Unit to regulate, manage and coordinate petroleum affairs across the full lifecycle of exploration, appraisal, development, production and decommissioning.

Its functions include issuing and managing licences, monitoring compliance with laws and petroleum agreements, enforcing health, safety and environmental standards, conducting inspections and audits, promoting local content and participation, and advising on national petroleum activities.

Another significant departure from the 1991 framework is the formalisation of petroleum data governance. While the current Act requires operators to provide information, it does not establish a central data authority.

The amendments require the Unit to receive and manage upstream petroleum data, maintain a national repository, analyse and forecast economic performance in the sector and publish an annual public report on upstream petroleum activities. This brings data stewardship and public reporting into the core of the regulatory mandate.

What stays the same

Despite the scale of restructuring, several core elements of the old Act remain intact. The licence-based regulatory system is preserved, with exploration and production continuing to be governed through statutory licences rather than alternative concession models.

The position of Chief Inspector of Petroleum Affairs is retained, although the reporting line shifts from the Minister to the Director-General.

Conflict-of-interest prohibitions also remain central. As under the old Act, officials involved in petroleum regulation are barred from holding interests in petroleum licences or licence-holding companies.

The amendments update terminology and currency references but do not dilute the substance of these safeguards. Confidentiality obligations likewise continue and apply to staff members under the new Unit structure.

Environmental and marine oversight is also retained through statutory consultation requirements, with the amendments updating ministerial titles rather than removing cross-sector checks. Transitional provisions ensure continuity, confirming that existing licences, approvals and ongoing applications remain valid under the new framework.

How Namibia’s approach compares internationally

When viewed against international practice, the proposed amendments move Namibia closer to upstream regulatory models used in established petroleum jurisdictions.

Countries such as Ghana, the United Kingdom, Norway and Brazil rely on specialised upstream regulators with clearly defined powers over licensing administration, inspections, audits, compliance monitoring and sector reporting.

The Namibian Bill adopts similar functional features, particularly the consolidation of licensing, compliance and data management, and the introduction of mandatory annual public reporting. What distinguishes Namibia’s approach is not the scope of regulatory functions, which aligns with global norms, but the institutional design, with the Unit located in the Office of the President rather than as an arm’s-length statutory agency.

Potential gains and risks

The potential advantages of the amendments lie in clarity and coherence. Consolidating upstream petroleum functions into a single unit reduces institutional fragmentation and clarifies responsibility.

Explicit mandates for inspections, audits, data management and reporting strengthen regulatory transparency and long-term sector planning.

The introduction of asset and interest declarations for the Director-General and Deputy Director-General goes beyond the old Act’s conflict-of-interest rules. It aligns with governance standards applied to senior officials in comparable regulators.

At the same time, the amendments carry risks inherent in centralisation. Concentrating licensing, compliance enforcement, and data custody within a single institutional structure creates a dependence on capacity, technical expertise, and efficient delegation.

If resourcing or internal processes are weak, decision-making could slow rather than improve. There is also a transition risk, as operators adjust to new approval routes, reporting requirements and institutional interfaces, even though legal continuity is preserved.

The Amendment Bill does not discard the foundations of Namibia’s petroleum law; instead, it retains the core licensing, inspection, confidentiality, and conflict-of-interest principles of the 1991 Act, while reorganising authority, administration, and data governance to reflect the scale and complexity of a modern upstream petroleum sector.