Unlocking Potential: Why Namibia Needs an Independent Upstream Oil and Gas Regulator

In the realm of the oil and gas industry, Namibia has recently gained significant attention as a result of the offshore oil and gas discoveries by Total Energies and Shell in 2022. It has been reported by various publications that Namibia is on its way to becoming a major oil and gas producer and has been advised to put the necessary measures in place to avoid falling victim to the resource curse which has plagued other countries who failed to effectively manage their petroleum resources. With so much hype about Namibia’s oil and gas potential, a scrutiny of Namibia’s existing petroleum legal regime is essential to ensure that an effective petroleum legal and regulatory framework is in place.

Having an effective legal and regulatory framework is crucial for the proper development of our petroleum resources. An effective legal and regulatory framework needs to follow and consider the best practices in the industry and deal with potential risks such as corruption, health and safety, environmental degradation, the non-sustainable exploration of hydrocarbons, expropriation, and to consider the different stakeholders, such as indigenous people, local communities, local government. An effective legal and regulatory framework will also ensure that a competent independent authority is established with public powers to provide oversight, regulate the industry and implement government policy.

THE NATURE OF INDEPENDENT UPSTREAM OIL AND GAS REGULATORY AGENCIES

An independent upstream oil and gas regulatory agency is responsible for the regulation of the oil and gas sector. Independent regulatory agencies are established as an effective approach to regulation when legislatures delegate public powers to public bodies to regulate a certain social or economic area.
Most countries adopt independent upstream oil and gas regulatory agencies to ensure independence and attract high technical expertise. Independent upstream oil and gas regulatory agencies tend to be less politicized than government departments.

An independent regulator will oversee compliance with industry regulations, laws, policies and monitor the performance of industry participants and take appropriate actions, such as issuing licenses, permits, or penalties.

The role of an independent regulator is crucial in maintaining a fair and level playing field within the regulated industry. It ensures that all participants adhere to the established regulations and compete on equal terms, preventing monopolistic practices or unfair advantages.

THE NEED FOR AN INDEPENDENT UPSTREAM OIL AND GAS REGULATOR IN NAMIBIA

The concept of establishing an independent upstream oil and gas regulator is not new in Namibia. The White Paper on Energy Policy of 1998 resolved that Government will ensure that policymaking, regulatory oversight and industry operations are separated. This was done with a view to ensure that institutions are not both players and referees in the upstream oil and gas sector. In the same White Paper of 1998, it was acknowledged that the Namibian upstream oil and gas sector was still relatively small and that they may be insufficient human resource to establish entirely separate institutions for each role and thus recommended that the principle of separation could still be applied to different sections in the same government department. That’s how the Department of Petroleum Affairs within the Ministry of Mines and Energy assumed role of regulator. However, that was twenty-five years ago and the petroleum industry in Namibia has evolved with institutions like Petroleum Training and Education Fund (PETROFUND) capacitating a lot of professionals in the industry over years.

Six years ago, the Government of Namibia through the National Energy Policy of 2017, and in particular in reliance on Policy Statements P14 of the Energy Policy, resolved to establish an independent regulator for the upstream oil and gas industry. Evidently, the Government of Namibia has already taken a position on establishment of an independent upstream oil and gas regulator, the ball is therefore in the Ministry of Mines and Energy’s court to ensure that it is realized. The establishment of an independent upstream oil and gas regulator would greatly benefit the country as it would ensure impartiality and transparency in decision-making processes, thereby reducing the potential for conflicts of interest or political interference.

OVER LAPPING POWERS IN THE INDUSTRY

The regulation of the upstream oil and gas sector in Namibia, as well as the issuing of petroleum licenses in done by the Ministry of Mines and Energy’s Directorate of Petroleum Affairs while at the same time being the policy maker. The Ministry of Mines and Energy oversees the sector and sets policies and guidelines for exploration and production activities. The Ministry of Mines and Energy and other relevant government bodies also participates in negotiations of petroleum agreements with international oil companies and establishes the legal and fiscal framework for the industry.

The government and legislature should establish policy while the regulator regulates the industry and administers regulations arising from policies set by government. The upstream oil and gas regulator should therefore ideally be independent of policy making process.

While these entities are involved in the regulation and administration of the sector, a distinct and independent regulatory authority with clear separation from the government’s policy making has not been established.

The clear distinction between the roles and functions of the government and the regulator is essential for an effective upstream oil and gas governance framework.

THE ROLE AND FUNCTION THAT AN INDEPENDENT UPSTREAM OIL AND GAS REGULATOR CAN PLAY IN NAMIBIA

For there to be an operational and effective regulator, it is important to design an effective regulatory framework tailored to Namibia’s specific needs and aspirations. Some of the functions and roles that a regulator will undertake include.

Licensing and Permitting: An upstream regulator will oversee the licensing and permitting process for oil and gas exploration and production activities. These will include evaluating applications, setting criteria for qualification and granting licenses.

Monitor Petroleum Activities: An upstream regulator will monitor petroleum activities and carry out the necessary inspection and audit related to the activities.

Technical and Safety: An upstream oil and gas regulator will have specialized technical experts in the industry. They will review the technical aspects of exploration and production plans, assess environmental impact assessments and ensure compliance with safety standards.

Compliance with laws: An upstream oil and gas regulator will monitor and ensure compliance with national policies, laws and regulations and agreements related to petroleum activities.

Local Content Development: An upstream oil and gas regulator will assess the promotion of local content development. This will be done by setting minimum requirements for local participation, job creation and capacity building. The regulator can facilitate skills transfer, technology transfer and the development of local businesses.

Environmental Protection: An independent regulator will establish and enforce stringent safety standards, drilling practices and environmental regulations. It can monitor and inspect operations to ensure compliance, thus mitigating potential environmental hazards, as well as minimizing environmental impacts.

Issue Guidelines or Notices: An independent regulator may by notice in the Gazette issue guidelines or notices to enhance and clarify the understanding, applicability and enforcement of any rule or code pertaining to the upstream oil and gas industry.

LEARNING FROM OIL AND GAS PRODUCING JURISDICTIONS

The comparison of jurisdictions with independent upstream oil and gas regulators provides valuable insights into the potential benefits of establishing a similar regulatory framework in Namibia.
Brazil serves as an exemplary case, where the creation of the Brazilian National Agency of Petroleum Natural Gas and Biofuels (ANP), as an independent regulatory agency, possesses extensive regulatory powers for the upstream oil and gas.
Similarly, the United Kingdom (UK) adopted an independent regulatory approach with the creation of the Oil and Gas Authority (OGA), the rationale behind its establishment was to attract investors through a non-politicized technical body. The OGA, as an independent body, focuses on operational regulation, licensing and maximizing economic recovery of the UK’s oil and gas reserves.

LEARNING FROM AFRICAN NATIONS

Angola, as the second-largest oil producer in Africa, had long relied on its NOC, Sonangol, as the de facto regulator. However, conflicts of interest and governance issues prompted the recognition of the need for an independent regulatory agency. This led to the establishment of the National Agency for Petroleum Gas and Biofuels (ANPG), which acts as the competent authority for the regulation of the oil and gas industry in Angola.

In Ghana, the creation of the Petroleum Commission as an independent regulatory agency for upstream oil and gas signaled a significant development for the regulation of the country’s oil and gas industry. The commission possesses regulatory powers, including monitoring petroleum activities, formulating policies, ensuring compliance, and promoting local content. Ghana’s achievements in good governance and administrative capabilities make it an interesting case to consider.

These comparisons highlight the importance of independent regulatory bodies in overseeing the oil and gas industry, such a regulator could enhance professionalism, attract investors, ensure efficient regulation and maximize the country’s hydrocarbon resources while maintaining transparency and good governance practices.

CHANGES ARE NEEDED

The establishment of an independent upstream oil and gas regulator is vital for ensuring effective governance, promoting fair competition, transparency and safeguarding the interests of all stakeholders involved. By operating independently free from political influence, the regulator can make impartial decisions based on technical expertise, ensuring a level playing field for industry participants.

It is therefore necessary, in order to have an Independent Upstream Oil and Gas Regulator, that the current proposed amendments to the Petroleum (Exploration and Production) Act of 1991 should have provisions for the creation of an independent upstream oil and gas regulator.

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Astrid Chombo

Astrid Chombo

Administrative Assistant
Bachelors in Marketing (Namibia)
Bachelor of Public Governance (Honours) (Namibia)

Mercy Nasilele

ATTORNEY (CA) LLB (Honours) ( Namibia)
Diploma in Arbitration and Dispute Resolution (Namibia)

Mercy Nasilele joined SNC Incorporated as a legal intern in 2021. She holds a Diploma in Arbitration and Dispute Resolution, and a Bachelor of Laws Honours Degree (LLB) (Honours) from the University of Namibia.

She is presently enrolled with the Justice Training Centre of Namibia, in pursuit to become an Admitted legal practitioner of the High Court of Namibia.

Her favourite verse is Hebrews 11:1

”Now faith is confidence in what we hope for and assurance about what we do not see.”

Netumbo Nuuyoma

Netumbo Nuuyoma

EXECUTIVE ASSISTANT

Bachelor Degree in Accounting (Namibia)
MSc in General Management (Germany)

Netumbo Nuuyoma joined SNC Incorporated as the Executive Assistant to the Managing Partner in October 2024. She holds a Bachelor Degree in Accounting from the Namibia University of Science and Technology and an MSc in General Management from PFH Private University of Applied Sciences. Since joining the firm, Netumbo has gained practical experience in executive support, project coordination, and financial services. She is known for her adaptability and commitment to building positive relationships that contribute to organizational success. Her role encompasses managing executive calendars, coordinating meetings and travel, preparing financial administration, and handling confidential correspondence.

Claassens Chombo

Office Assistant
Dipl. In Business Administration, BBA (Honours) (Namibia)

Claassens Chombo joined SNC Incorporated as an Office Assistant in 2021. He holds a diploma in Business Administration as well as an Honours Degree in Business Administration with a major in Strategic Human Resource Management from the University of Namibia. Since joining the firm, Claassens has gained practical experience in office administration which generally ranges from administrative, handling and managing client documentation.

He describes himself as highly motivated and lives by a quote by Marie Forleo which states:

“Success doesn’t come from what you do occasionally, it comes from what you do consistently”.

Ndeshi Mufeti

Ndeshi Mufeti

Attorney (CA)
LLB (Honours) (Namibia)

Olavi Popyeinawa

Olavi Popyeinawa

ATTORNEY (CA)
LLB (Honours) ( Namibia)
Diploma in Arbitration and Dispute Resolution (Namibia)
PGDip (Drafting & Interpretation of Contracts) (South Africa)

Olavi Popyeinawa is a Candidate Attorney at SNC Incorporated, a full service Energy, Natural Resource, Corporate & Commercial and Dispute Resolution law firm based in Windhoek, Namibia. Olavi joined the firm as a legal and communication intern and has since developed his skillsets, where he now brings a unique blend of legal expertise and communication skills to the firm. Olavi previously served as a Columnist at the largest state owned newspaper in Namibia, where he wrote and authored the widely-read column in the New Era Newspaper for half a decade. His insights into critical and social matters attracted thousands of readers. He holds a Bachelor of Law Honours (LLB) degree and a Diploma in Alternative Dispute Resolution, both from the University of Namibia. He also holds a Postgraduate Diploma in Drafting and Interpretation of Contracts from the University of Johannesburg. He is currently enrolled at the Justice Training Center, where he is pursuing his admittance as a Legal Practitioner in the High Court of Namibia.

Loide Hamutumwa

CANDIDATE ATTORNEY

B. JURIS& LLB Hon, LLM (Namibia)
LLM (Petroleum Taxation and Finance) (United Kingdom)
Dipl. Commerce (Namibia)
BTech in Administration (Namibia)

Loide Hamutumwa has broad experience in Energy Finance and Taxation. With very impressive credentials, Loide holds a Diploma in Commerce, BTech: Administration (Namibia University of Science and Technology); B Juris, LLB (Honours), LLM (University of Namibia); LLM: Petroleum Taxation and Finance – distinction (University of Dundee).

For her in-depth knowledge in mineral & petroleum taxation and governance, she was appointed as a member to the government Petroleum and Mining Contracts Negotiating Team.

 

Loide’s other notable appointments include serving as a Convener of the Tax Tribunal. She is the present Secretary to the Namibia Double Taxation Agreements Negotiation Tax Team and a member to various SADC Working Groups on tax matters. Her career in Energy Finance started at the Solar Revolving Fund at Kongalend Financial Services (Pty) Ltd, prior to joining the UNDP-funded project Namibia Renewable Energy Programme (NAMREP), and later, joining the Ministry of Mines and Energy.

She enjoys writing tax journals and uses the knowledge and experience developed over years of working at the Legal Unit, Inland Revenue Department to educate taxpayers on tax compliance and tax justice.

 

Loide Hamutumwa is a Candidate Legal Practitioner presently enrolled at the Justice Training Centre of Namibia to undergo practical legal training and once completed, will apply to be enrolled as an Admitted Legal Practitioner of Namibia.

Esther Kiangi

Associate
LLB (Honours) ( Namibia)
LLM (Oil Gas & Mining Law) (United Kingdom)

Esther Kiangi specializes in the oil, gas and energy industries.

After completing her LLB at the University of Nottingham, she pursued an LLM in Oil, Gas and Mining at Nottingham Trent University. Her expertise lies within upstream support services, including but not limited to the permitting and licensing of explosives and radiation sources, exemptions in respect of declarations of continuous operations, and in business advisory with regard to project development. In addition to the above, she has experience in contractual transactions and regulatory compliance.

While her primary focus is in the natural resource industry, her other legal skills lie within Corporate and Commercial Law, where she has cumulated vast experience as a Company Secretary to various companies, dealing with the day-to-day administrative tasks in the management of companies, as well as high-value transactions further acting as a business advisor to these clients in respect of deal structuring within the ambits of the law.

 

Esther is a member of the AIEN (Association for International Energy Negotiators), and her other notable achievements include being appointed to the board of Pearl Waterfree Technologies, as well as Triumphant College.

Esther recently completed her theoretical and practical training at the Justice Training Centre of Namibia and has  been  admitted to practice as a legal practitioner of the High Court of Namibia.

Shafimana Shimakeleni

PARTNER
LLB (Honours) (Namibia)
LLM (Oil & Gas with Professional Skills) (United Kingdom)

Stanley Kambonde

SPECIALIST MINERALS ADVISOR
B.Juris & LLB (Namibia)
LLM (Oil, Gas and Mining Law) (United Kingdom)
PGDip (Drafting & Interpretation of Contracts) (South Africa)

Stanley specializes in Mining (both large and small scale), Environmental Law, Marine Regulation, Minerals Investment Leveraging and Commodities Brokering. He has been vividly involved in the mining industry, both as an advisor and mining entrepreneur, for more than Seven (7) years.

Stanley not only understands the Namibian mining sector through the lens of legal and policy framework but has also grasped the technical operating components of a mining system along the value chain. Through such an in-depth technical, theoretical and investment-leveraging understanding, Stanley provides clients with expert advice and solutions to complex aspects of the minerals sector.

He has provided advisory services to various national and international corporations in the mining industry, including on legislative and regulatory frameworks. Further, Stanley has brokered and negotiated numerous transactions ranging from sale of mineral commodities, sale/transfer of mineral licenses and the successful setting up of mining operations.

He holds a B. Juris, LLB (Honours) from the University of Namibia and an LLM in Oil, Gas and Mining from Nottingham Trent University in the United Kingdom. He also holds a Postgraduate Diploma in Drafting and Interpretation of Contracts from the University of Johannesburg.  Stanley recently enrolled at the Justice Training Centre of Namibia to undergo practical legal training and once completed, will apply to be enrolled as an Admitted Legal Practitioner of Namibia. 

Shakwa Nyambe

MANAGING PARTNER

B. Juris & LLB (Namibia),
LLM (Oil & Gas Law with Professional Skills) (United Kingdom)
PGDip (Drafting & Interpretation of Contracts) (South Africa)
Executive Diploma in Global Business (Masters Level) (United Kingdom)