The proposed amendment to Namibia's Petroleum Exploration & Production Act of 1991, introduced in parliament, seeks to eliminate the role of the Petroleum Commissioner, directly impacting the future of the current commissioner, Maggy Shino. This legislative change is part of a broader consolidation of control over the oil and gas sector by the presidency.

Consolidation of Power and New Structure

Following the appointment of the new president, an Upstream Petroleum Unit (UPU) was established within the presidency, reporting directly to the head of state, though it previously lacked legal standing. Kornelia Shilunga was appointed as the UPU's Director General, with Carlo McLeod as her deputy, raising initial questions about Shino's position. The amendment aims to formalize the UPU's functions and transfer key powers from the Minister of Mines & Energy to the presidency and the UPU, which will become the new upstream regulator. Specifically, powers from the petroleum commissioner role are to be transferred to McLeod, the UPU deputy director general.

Objectives of the Amendment

The Petroleum E&P Amendment Bill of 2025 is intended to modernize Namibia's oil and gas legislation by enhancing institutional capacity, ensuring regulatory clarity, and aligning governance with international best practices. It updates outdated terminology, repeals the petroleum commissioner role, and transfers relevant functions to the UPU. The bill also aims to improve coordination between the presidency, Ministry of Finance, and other portfolios, ensuring cohesive management of physical, environmental, and technical aspects of petroleum. It emphasizes effective, transparent, and accountable sector management, with parliament retaining oversight, and guarantees that existing licenses and approvals remain valid under the new structure.

Political Context and Reactions

The bill's introduction followed the sacking of the former Minister of Mines & Energy, with the interim minister presenting the motion. Opposition MPs criticized the rushed process, suggesting a delay for debate, and some called the bill a "surprise." If passed, decision-making will be concentrated among a small group of officials and the president, with the ruling party potentially justifying the changes to avoid issues like those leading to the previous minister's dismissal, which included unauthorized license renewals. Observers note that while the move was expected due to the UPU's lack of legal identity, the timing may be a reaction to recent political events.

Implications for Maggy Shino and Sector Governance

The amendment leaves Shino, a respected official, in limbo, with decision-making powers shifting to the UPU under Shilunga, reducing the Ministry of Mines & Energy's upstream influence. Sources express concern over losing Shino's expertise and argue that the sector requires qualified experts empowered through accountability, not micromanagement. Speculation suggests Shino might be reassigned to the downstream sector, but her future remains uncertain as the government moves to centralize control ahead of anticipated oil production by 2029.

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Iain Esau. All rights to the original text and images remain with their respective rights holders.