According to Article 100 of the Constitution of the Republic of Namibia 1990, all natural resources on, in, or under any land in Namibia are vested in the state, unless they are otherwise lawfully owned. This includes all natural oil and natural gas, which, under Namibian legislation, are generally referred to as petroleum.

The upstream petroleum industry in Namibia is primarily regulated by the Petroleum (Exploration and Production) Act 1991 (Act 2 of 1991) – the “Petroleum Act”. The Petroleum Act provides that all rights in respect of petroleum are vested in the state, notwithstanding any right regarding the ownership of the land where the petroleum is found.

As a result, ownership of petroleum resources, as well as the right to exploit these resources, vests in the state. This effectively amends the common law position in Namibia, according to which the owner of land is considered to be the owner of everything above and below the land. The Minister, acting on behalf of the state, may, however, grant the rights to exploit these resources to applicants in accordance with the terms of the Petroleum Act.

There are no regulations pertaining to the ownership of petroleum commodities traded at downstream level, in relation to which the common law position of ownership applies.

The Petroleum Act is administered by the Minister of Mines and Energy (the “Minister”). The Minister must appoint a Commissioner of Petroleum Affairs (the “Petroleum Commissioner”) and a Chief Inspector of Petroleum Affairs. These two officers exercise or perform the powers, duties, and functions conferred or imposed upon them by or under the provisions of the Petroleum Act, as well as such other functions as may be imposed upon them by the Minister. The Petroleum Commissioner and Chief Inspector are assisted by such other officers as may be designated by the Permanent Secretary of Mines and Energy for this purpose.

The Petroleum Ancillary Rights Commission is also established under the Petroleum Act. This commission principally deals with disputes between licence-holders and landowners.

The National Petroleum Corporation of Namibia (PTY) Ltd (Namcor) is a private company duly incorporated under the company laws of Namibia, and is wholly owned by the government of the Republic of Namibia.

Namcor has no regulatory authority nor statutory right to participate in petroleum development. However, at the request of the Minister and on its own behalf or that of the state, it may:

• carry out reconnaissance operations, exploration operations, and production operations, whether on its own or together with any other person or entity; and
• carry out or take part in any process of refining, disposing of or dealing in petroleum or any of its by-products.

Namcor may engage in this activity in order to advise or otherwise assist the Minister in relation to the Petroleum Agreement (see 1.4 Principal Hydrocarbon Law(s) and Regulations) or any negotiations relating to it, or in relation to the discovery of petroleum or the development of petroleum resources, with the goal of assisting the Petroleum Commissioner upon request and in the exercise of their powers, duties, and functions under the Petroleum Act.

The Petroleum Act

As stated in 1.1 System of Hydrocarbon Ownership, the upstream petroleum industry in Namibia is primarily regulated by the Petroleum Act, which provides for the reconnaissance, exploration, production, and disposal of petroleum, as well as control over it. No person may carry on any operations in respect of petroleum without the necessary licence issued by the Ministry of Mines and Energy (MME). The Act also provides for the payment of petroleum royalties.

The Taxation Act

Aside from the Petroleum Act, the Petroleum (Taxation) Act 1991 (Act 3 of 1991) – the “Taxation Act” – is also applicable to upstream petroleum activities. The Taxation Act provides for the payment of petroleum income tax and additional profit tax.

Model Form Petroleum Agreements

Furthermore, the Petroleum Act requires an applicant for a petroleum licence to enter into a Model Form Petroleum Agreement with the state. The agreement must be entered into before an exploration or production licence is issued to an applicant. The content of the Model Form Petroleum Agreement is prescribed by the Act. The Model Form Petroleum Agreement was published in 1998 and updated in 2007.

Other Legislation

Other legislation that makes up the framework within which petroleum exploitation takes place includes environmental legislation, such as the Water Act 54 of 1956, the Atmospheric Pollution Prevention Ordinance 11 of 1976, the Prevention and Combating of Pollution of the Sea by Oil Act 6 of 1981, and the Environmental Management Act 7 of 2007.

Expropriation

There are no provisions under the Petroleum Act for the expropriation of an interest in a licence. Licences can, however, be cancelled under certain conditions.

The principal petroleum law and regulations for downstream operations are more fully discussed in 3.3 Issuing Midstream/Downstream Licences.

Under the Petroleum Act, the Petroleum Commissioner may grant three different types of licence upon application by a company. This application procedure is explained in 2.2 Issuing Upstream Licences/Obtaining Hydrocarbon Rights.

Reconnaissance Licence

A reconnaissance licence entitles its holder to carry out reconnaissance operations in the block or blocks specified in the licence. “Reconnaissance operations” are any operations carried out for or in connection with the search for petroleum through geological, geophysical, and photo-geological surveys, and they include remote-sensing techniques.

Application

Application for a reconnaissance licence or the renewal of a reconnaissance licence must be made in the prescribed manner.

Duration

A reconnaissance licence is issued for a maximum period of two years and may be renewed for further periods, not exceeding two years at a time. It may, however, only be renewed twice.

Exploration Licence

An exploration licence authorises its holder to carry out exclusive exploration operations within the block or blocks to which the licence relates, subject to the terms and conditions specified in the licence. “Exploration operations” are any operations carried out for or in connection with the exploration for petroleum. These include geological, geophysical, geochemical, palaeontological, aerial, magnetic, gravity, or seismic surveys; the use of such surveys and drilling for appraisal purposes; and the study of the feasibility of any production operations or development operations to be carried out in the licence area, or of the environmental impact of these operations.

Application

An application for an exploration licence may not be granted in relation to any block or blocks in respect of which, at the time when the application was made, any licence other than a reconnaissance licence has been issued to any other person. The exploration licence must state the date on which it was issued, the particulars of the block or blocks to which it relates, and the terms and conditions other than the standard conditions contained in the Petroleum Act subject to which the licence was issued.

Duration

An exploration licence is valid for an initial maximum period of four years. The Minister may, upon application and with good cause, extend this period to an initial maximum of five years. A licence may be renewed for two further periods of two years each, but may not be renewed on more than two occasions, except as explained here. The Minister may, upon application and with good cause, extend these periods to a maximum of three years each. A third renewal is possible if the Minister deems it to be in the interest of the development of petroleum in Namibia. This third renewal may not be for a period longer than two years, although the Minister may, upon application and with good cause, extend this period to a maximum of three years. The holder of an exploration licence may, on renewal, be obliged to relinquish a certain portion of the exploration area.

Invitation to apply

Subject to the provisions of the Petroleum Act, the Minister may, if they deem it necessary or expedient in the public interest or that of the petroleum industry, invite applications for the granting of an exploration licence in respect of any block or blocks by notice in the government gazette. This notice may specify a period within which applications may be made and the terms and conditions subject to which any such application may be made. At present, an open bidding system exists and as such, investors are free to apply for an exploration licence to the extent blocks are available.

Production Licence

A production licence authorises its holder to carry out exclusive production operations in the block or blocks to which the licence relates, to sell or otherwise dispose of petroleum recovered within the block or blocks, and to carry on other operations and works in, or in connection with, the block or blocks that may be necessary for, or in connection with, the operations and selling or disposal. “Production operations” are any operations carried out for, or in connection with, the production of petroleum. The production licence must state the date on which it was issued, the particulars of the block or blocks to which the licence relates, and the terms and conditions (other than the standard conditions contained in the Petroleum Act) subject to which the licence was issued.

Application

The Petroleum Act prescribes the content of an application for a production licence and an application for the renewal of a production licence, as well as the powers of the Minister in respect of the granting or refusal of production licences.

Any part of an exploration area in respect of which a production licence is issued ceases to be part of the original exploration area. See 2.10 Restrictions on Production Rates for the official response to under-production.

Duration

A production licence is valid for a period not exceeding 25 years, to be determined by the Minister at the time when the licence was/is granted. It may be renewed for a further period, not exceeding ten years, to be determined by the Minister at the time of renewal of the licence. The renewal period runs from the date on which the licence would have expired if an application for renewal had not been made or from the date on which the application for renewal was/is granted, whichever is later. A production licence may not be renewed on more than one occasion. The maximum duration of a production licence is therefore 35 years. A production licence cannot expire in the period during which an application for its renewal is being considered, until the application is refused, withdrawn, or lapses, whichever occurs first.

COVID-19 Extensions

In light of the unprecedented global impact of the COVID-19 pandemic, the provisions of Clause 27 of the Model Form Petroleum Agreement read with Section 20 of the Petroleum Act empower the Minister, upon application made to the Minister by a licence holder who has been prevented from exercising any rights under their licence for any period as a result of an act of God, to extend by notice in writing on such conditions as the Minister may determine, the period for which the licence in question has been issued, by such period as may be determined by the Minister. The Minister must, however, give due regard to the provisions of this Act which relate to the period after which the licence in question expires.

The procedure for acquiring reconnaissance, exploration, or production licences is by way of application under an open bidding system. In the case of a company, this application must contain:

• the name of the company and particulars of its incorporation and registration;
• the names and nationalities of its directors;
• the share capital of the company and the name of any person who is the beneficial owner of more than 5% of the shares issued by the company;
• the block or blocks to which the application relates;
• the minimum operations and expenditure proposed to be carried out or expended in respect of the block or blocks to which the application relates;
• the programme of these operations;
• the expenditure in respect of these operations;
• the period within which the operations will be carried out and the expenditure will be made;
• an estimate of the effect the proposed reconnaissance operations may have on the environment; and
• the period for which the licence is required.

The applicant must demonstrate the technical and financial capacity to perform the minimum work commitments proposed and to cover the minimum expenditure to be incurred.

There have been no significant changes in the regulatory approach with respect to the issuing of licences.

Royalties

Royalties are charged according to the terms of the Petroleum Act. They are payable quarterly on or before the last day of the month following each quarter. The rate at which royalties are charged depends on the licensing round during which the licence was issued. The royalty on licences issued during the first and second licensing rounds is charged at a rate of 12.5% of the market value (determined according to the terms and conditions of the licence) of the petroleum produced and saved in the production area during each quarter. Royalties on licences issued during the third and fourth licensing rounds are charged at a rate of 5% on the market value (determined according to the terms and conditions of the licence) of the petroleum produced and saved in the production area during each quarter. The market value is determined based on the petroleum produced and saved.

The Petroleum Taxation Act

The tax regime for petroleum exploration and production activities is regulated under the Petroleum Taxation Act 3 of 1991 (the “Petroleum Taxation Act”) as amended by the Petroleum Laws Amendment Act of 1998. The aforesaid Act provides for the levy and collection of petroleum income tax and an additional profit tax.

The rate of petroleum income tax is 35% of the taxable income received or accrued by, or in favour of, a person from a licensed area. Each licensed area is assessed separately and losses in one area cannot be offset against profits in another.

The Petroleum Taxation Act further provides for the levying of additional profit tax in respect of the first, second, and third accumulated net cash position determined with respect to every tax year.

Annual surface charges are also payable by holders of exploration and production licences, calculated on the number of square kilometres included in the block to which the licence relates.

Other Applicable Tax Laws

Other tax laws that apply to the oil industry are as follows.

• The Income Tax Act 24 of 1981, as amended, which provides for withholding tax of 10% imposed on all management, consulting, technical, administrative, and entertainment services paid by a resident to a non-resident, subject to the provisions of any double-taxation agreements. Service fees payable to foreign directors and foreign entertainment fees attract a withholding tax of 25%.
• The Value Added Tax Act 10 of 2000, which currently rates VAT at 15%.
• The Stamp Duties Act 15 of 1993, which provides for the collection of stamp duties on instruments at rates determined in the schedule to the Act.
• The Export Levy Act 2 of 2016 which imposes an export levy of 1.5% on unrefined crude oil of all types.

The Ministry of Finance (through the permanent secretary) is the government body that exercises tax authority.

See 2.3 Typical Fiscal Terms: Upstream.

Namcor has no special rights in connection with upstream licences. In practice, however, Namcor typically receives a 10% participating interest in the award of an exploration licence. Namcor’s participating interests are typically subject to such terms as may be agreed between Namcor and one or more co-licence-holders in terms of a joint operating agreement.

There are no statutory local content requirements for upstream operations by private investors. However, during November 2021, the Ministry of Mines and Energy presented a draft local content policy on its website, to serve as notice to the public of its intention to embark on a consultative process with stakeholders, to formulate a local content policy for the petroleum upstream industry in Namibia. The draft aims to strike a conversation around policy yet to be adopted, that will clearly define “local content” and set out clear and comprehensive plans on local content to ensure that Namibians benefit from their natural resources. This process is yet to be concluded.

In the interim, it is a standard condition of a petroleum licence that the person to whom the licence has been issued will:

• when selecting employees, give preference to Namibian citizens who have appropriate qualifications for the purposes of the operations to be carried out in terms of the licence;
• carry out training programmes in order to encourage and promote the development of Namibian citizens in their employment;
• having due regard for the need to ensure technical and economic efficiency, and make use of products, equipment, and services which are available in Namibia;
• co-operate with other persons involved in the petroleum industry in order to enable Namibian citizens to develop the skills and technology required to render services in the interest of the industry in Namibia; and
• immediately report the discovery of any mineral in their exploration area to the Minister.

When a discovery is made in an exploration area, the holder of the exploration licence must inform the Petroleum Commissioner in writing. Within a period of 60 days of this notice, the holder of the licence must furnish the Petroleum Commissioner, in writing, with particulars relating to the block or blocks in which the discovery was made, the nature of the discovery, and any other particulars that the Petroleum Commissioner may require. The holder of an exploration licence must immediately arrange for tests to be done in connection with the discovery in order to determine the commercial interest of the discovery, and, within a period of 60 days of these tests being completed, furnish the Petroleum Commissioner with a report containing the evaluated results of the tests and an evaluation of the potential commercial interest of the discovery.

If it appears from the report that the discovery may be of commercial interest, the holder of the licence in question must take all reasonable steps in order to appraise the discovery and determine the quantity of petroleum to which the discovery relates, insofar as it occurs within the exploration area, and furnish the Petroleum Commissioner with a report containing the particulars of this appraisal and a determination after the appraisal has been completed.

An application for a production licence must, among other things, contain a development plan, with a proposed programme of production operations and of the processing of the petroleum in question, which must include:

• the date on which it is estimated the applicant will commence the production of the petroleum in question;
• an estimate of the capacity of such production and the extent of the operations to be carried out;
• an estimate of the overall recovery of such petroleum and of any by-products recovered in processing such petroleum;
• the nature of such petroleum and by-products;
• the arrangements made for the sale of such petroleum and by-products;
• the manner in which the applicant intends to prevent pollution, to deal with waste, to safeguard natural resources, and to minimise the effect of such operations on land adjoining the production area;
• separate decommissioning plans in respect of the production area and any area outside such production area where activities in connection with the production operations are being carried out, setting out to the satisfaction of the Minister (acting in consultation with the ministers responsible for the environment, fisheries, and finance) the measures proposed to be taken after cessation of such production operations to remove or otherwise deal with all installations, equipment, pipelines, and other facilities, whether onshore or offshore, erected or used for the purposes of such operations, and to rehabilitate land disturbed by way of such operations, for which plans must include:
1. the estimated date when such decommissioning would occur;
2. the extent of such decommissioning;
3. the manner in which such decommissioning would take place;
4. the estimated cost of such decommissioning; and
5. such other measures or information as the Minister may determine; and
• a statement setting out any significant effect that the carrying out of such production operations is likely to have on the environment, and the manner in which the applicant intends to control or eliminate such effect.

See 2.1 Forms of Private Investment: Upstream.

In addition, there is a term under the Model Form Petroleum Agreement that the Minister may, at their discretion, require holders of production licences to sell crude oil in Namibia in order to satisfy Namibia’s domestic supply market requirement. This requirement will be fulfilled on a pro rata basis with other producers in Namibia, according to the quantity of crude oil produced by each producer.

A licence-holder must keep proper record of the abandonment of wells in connection with reconnaissance, exploration, or production operations.

The cancellation of a licence does not affect any obligation or liability incurred in relation to anything done under, or by virtue of, the terms and conditions of the licence.

In cases where a licence is issued to more than one company, the Model Form Petroleum Agreement provides that all of the licence’s terms and obligations will apply to each company, jointly and severally.

Licence-holders must effect and, at all times during the term of this petroleum agreement, obtain and maintain insurance for, and in relation to, petroleum operations. This insurance must cover:

• loss or damage to any or all of the assets being used in connection with the petroleum operations;
• loss or damage, for which the licence-holders may be liable, caused by pollution in the course of, or as a result of, the petroleum operations;
• loss of property or damage suffered, or bodily injury suffered, by any third party in the course of, or as a result of, petroleum operations for which they may be liable;
• any claim for which the government may be liable relating to the loss of property or damage suffered, or bodily injury suffered, by any third party in the course of, or as a result of, petroleum operations, insofar as they are liable to indemnify the government;
• the cost of removing wrecks and cleaning-up operations pursuant to an accident in the course of, or as a result of, the petroleum operations; and
• the licence-holder’s liability to employees engaged in its petroleum operations, and any other risk of whatever nature as is customary to insure against in the international petroleum industry in accordance with good oilfield practices.

No person may transfer a petroleum licence, or grant, cede, or assign any interest in a petroleum licence to any other person without the written approval of the Minister. The same applies if a person wishes to become a joint holder of a petroleum licence. A licence may only be transferred, or interest in a licence granted, ceded, or assigned, to a company, and only another company may become a joint holder of a petroleum licence.

The renewal, transfer, cession, or assignment of interest in a licence is to be made by way of application to the Petroleum Commissioner, and the Minister may refuse or grant a licence on whatever terms and conditions as they may determine. Such application must contain particulars of an assignee’s financial and technical capacity to fulfil the work obligations under the petroleum agreement. The granting, ceding, or assignment of an interest in a licence does not affect the obligation or liability of the holder of a licence imposed in terms of the particular licence or any provisions of the Petroleum Act.

It takes approximately one to two months for such an application to be considered. The application fees for the transfer of an exploration or production licence amount to NAD30,000 and there are no statutory pre-emptive rights reserved for the state.

A change of control of a company does not require the approval of the Minister. According to the terms of the Petroleum Act, no consent is required for a change of operator. However, the Model Form Petroleum Agreement typically provides that the Petroleum Commissioner should give consent for a change of operator.

If petroleum is not recovered in a production area within which the Minister is satisfied that petroleum is recoverable, or if petroleum is recovered at a rate which, in the opinion of the Minister and having regard to the capacity of the petroleum reservoir in question, the Minister feels not to be in the public interest, then from time to time the Minister may, by notice in writing addressed and delivered to the holder of the production licence concerned, direct the holder to take (with due regard for good oilfield practices) such steps as may be necessary and practicable to recover petroleum in the given area or to increase or reduce the rate at which the petroleum is recovered. This rate should not exceed the capacity of the production facilities of the holder of the licence, as the Minister may specify in the notice. Any holder of a production licence who contravenes or fails to comply with such a notice is guilty of an offence and, on conviction, is liable to a fine not exceeding NAD100,000.

In addition, the Minister may (with due regard for good oilfield practices) by notice in writing addressed and delivered to the holder of a licence, give directions to the holder in relation to the rates or the determination of rates at which petroleum and water may be recovered from any well drilled for the purposes of, or in connection with, reconnaissance operations, exploration operations or production operations, or from any petroleum reservoir. If the licence-holder fails to comply with these directions to the satisfaction of the Minister, within the period specified in the notice or a further period that the Minister may with good cause allow in writing, then the Minister may cause such steps to be taken as may be necessary for compliance with the directions, and may recover from the licence-holder in a competent court the costs incurred in connection with the steps taken. Any holder of a licence who contravenes or fails to comply with a notice is guilty of an offence and, on conviction, may be liable to a fine not exceeding NAD20,000 or to imprisonment for a period not exceeding five years, or to both a fine and imprisonment.

See 3.3 Issuing Midstream/Downstream Licences.

No national monopoly exists in Namibia. It is, however, worth mentioning that in the past, Namcor had a statutory mandate which has since been revoked, to exclusively source 50% of Namibia’s annual fuel requirements. There is a possibility that this mandate may be restored.

Downstream petroleum trading is regulated under the Petroleum Products Regulations (the “Regulations”), passed under the Petroleum Products and Energy Act 13 of 1990 (the “Petroleum Products Act”). There is no bidding system.

The following licences and certificates may, in accordance with the Regulations, be granted and issued on application to the Minister:

• a retail licence;
• a wholesale licence; and
• a consumer installation certificate.

Retail Licence

An application for a retail licence must be accompanied by:

• a certified copy of the applicant’s identity document and, in the case of a non-Namibian citizen, a permanent residence permit or an employment permit and proof of residence in Namibia, or proof of domicile in Namibia, as the case may be;
• a certified copy of the applicant’s registration documents, if the applicant is a corporate body;
• a certified copy of an environmental impact assessment, with its outcome, if such a study has been conducted;
• if applicable, a written confirmation by the supplying wholesaler that it agrees to supply fuel to the applicant with a list of all the buildings, structures, and plants, and any other item or assistance that the wholesaler agrees to supply to the applicant in the event of a successful application;
• a signed declaration by the applicant that there is sufficient capital available for the operation of a retail outlet, and a description of the amount and nature of such capital and particulars regarding the terms under which the capital is held or invested;
• a final design or construction drawings of all buildings, roadworks, structures, and the plant to be erected on the proposed premises, including the location of the proposed premises, or if not available, preliminary sketches or a general layout plan of the premises; and
• in the case of an applicant being a wholesaler, written confirmation of whether the applicant intends to operate the proposed retail outlet itself or whether the applicant intends to enter into an agreement with another person, according to which the other person will operate the retail outlet.

Wholesale Licence

An application for a wholesale licence must be accompanied by:

• a certified copy of the applicant’s identity document and, in the case of a non-Namibian citizen, permanent residence permit or employment permit and proof of residence in Namibia, or proof of domicile in Namibia, as the case may be;
• a certified copy of its registration documents, if the applicant is a corporate body;
• a list of all retail outlets and others that, at the time of application, it intends to supply with fuel;
• a list of the ports of entry or exit where it intends to import or export fuel, as the case may be;
• a list of all the storage facilities intended to be used, including shared storage facilities, with specific reference to:
1. the location of the storage facilities;
2. the capacity of the storage facilities;
3. the ownership of the storage facilities (including the ownership of the land on which the storage facilities are situated, if different) and, in the case of shared ownership, the basis of sharing; and
4. the names of other wholesalers sharing the same storage facilities;
• in the case of storage facilities to be erected, the final design or construction drawings of buildings, roadworks, structures, and the plant to be erected, including the location, or if not available, preliminary sketches or a general layout plan thereof, and in the case of existing storage facilities, the as-built or record drawings of the buildings, roadworks, structures, and the plant, including the location; and
• if an environmental impact assessment has been conducted, a certified copy of the document setting out the outcome of such study.

Consumer Installation Certificate

An application for a consumer installation certificate must be accompanied by:

• a certified copy of the applicant’s identity document and, in the case of a non-Namibian citizen, permanent residence permit or employment permit and proof of residence in Namibia, or proof of domicile in Namibia, as the case may be;
• a certified copy of the applicant’s registration documents, if the applicant is a corporate body;
• proof that the applicant operates a commercial or industrial undertaking or mine, or is a bona fide farmer;
• a certified copy of an environmental impact assessment, with its outcome, if such a study has been conducted; and
• in the case of an application for a petrol consumer installation, a signed declaration by an accountant or auditor registered under the Public Accountants’ and Auditors’ Act, 1951 (Act No 51 of 1951), that the applicant has, for a consecutive period of at least three months, consumed more than 10,000 litres of petrol per month, and further proof must also be submitted that the 10,000 litres of petrol were obtained from the same supply point.

Neither the Petroleum Act nor the Petroleum Products Act make provision for the issuing of midstream licences.

Price of Fuel

At wholesale level, the price of fuel is regulated by the Basic Fuel Price formulae.

The Minister may, by way of regulation, prescribe the price, or a maximum and minimum price, at which petroleum products may be sold, or determine that the products may be sold without any restriction to the selling price. As such, no retail licence-holder may supply, or offer to supply, petrol at a retail outlet other than by way of sale at the price determined under the Petroleum Products Act.

There are no statutory restrictions on private investment in midstream operations such as transportation pipelines, processing and fractionation systems, and storage and terminal facilities. However, such projects may attract licensing, statutory approvals and consents, permitting, and other statutory authorisations, depending on the nature of the project.

The Petroleum Products Act provides measures for the saving of petroleum products, and economy in the cost of their distribution. It further provides measures for:

• the maintenance of the relevant prices;
• control of the furnishing of certain information regarding petroleum products; and
• the rendering of services of a particular kind, or services of a particular standard, in connection with motor vehicles.

The Petroleum Products Act also provides for the establishment and utilisation of the National Energy Fund and for the establishment and functioning of the National Energy Council. Finally, the aforesaid Act provides for the imposition of levies on fuel.

Parties to commercial downstream arrangements are free to contract terms to their agreements, as they see fit, however subject to the provisions of the Petroleum Products Act and the Regulations.

The Minister may impose a levy, for the benefit of the National Energy Fund, on any petroleum product, electricity, natural gas or liquefied natural gas, hydropower or wind power, nuclear, geothermal, biomass, or any other energy source which is manufactured, generated, transmitted, distributed, or sold at any point in Namibia, or which is imported into Namibia.

The Income Tax Act 24 of 1981, as amended, provides for Companies Tax at 32% and withholding tax of 10% imposed on all management, consulting, technical, and administrative services paid by a resident to a non-resident, subject to the provisions of any double-taxation agreements. Service fees payable to foreign directors and foreign entertainment fees attract withholding tax of 25%.

The Value Added Tax Act 10 of 2000 currently rates VAT at 15%.

The Stamp Duties Act 15 of 1993 provides for the collection of stamp duties on instruments at rates determined in the schedule to the Act.

Namcor has no special rights in connection with midstream/downstream licences.

There are no statutory local content requirements applicable to midstream/downstream operations by private investors.

A number of general conditions apply to all wholesale licences. These include:

• compliance with the Petroleum Products Act and the Regulations issued thereunder;
• compliance with labour, safety, hazardous substances, security, health, and environment legislation;
• sale in bulk quantities only from dispensing points situated at the relevant premises of the wholesaler;
• obtaining all relevant import, export, and wholesale approvals and permits as required under the Petroleum Products Act or any other applicable law prior to any import into, export from, or wholesale sale of fuel in Namibia; and
• record-keeping and submission of such information to the Minister as is required by or under the Regulations.

Petroleum products that are imported or distributed must comply with approved specifications as applicable under the Regulations. The wholesale licence-holder may not abandon storage facilities other than in accordance with these Regulations.

Similarly, a retail licence-holder must:

• comply with the Petroleum Products Act and the Regulations and all other applicable laws, including laws relating to labour, safety, hazardous substances, security, health, and the environment;
• inform the Minister of any dangerous situation, including the steps taken or proposed to be taken to rectify such situation or to eliminate or minimise the danger arising from such situation;
• keep records and submit information to the Minister as required by the Regulations;
• comply with the Regulations relating to petroleum product spills;
• ensure compliance with the approved specifications of petroleum products sold to consumers;
• at all times hold such permits, licences and certificates relating to the sale of petroleum products and other services provided at the retail outlet, as may be required by any other law; and
• only obtain fuel for retail sale from a wholesale licence-holder.

If a licence-holder or certificate-holder wishes to abandon the relevant premises, then the licence-holder or certificate-holder must inform the Minister of the intended date of closure, change, or abandonment at least one month in advance. A licence-holder or certificate-holder has a duty to sufficiently restore such premises so that they do not pose a threat to the environment or to the health and safety of the public.

A private investor constructing infrastructure does not have condemnation/eminent domain rights.

The Petroleum Products and Energy Act 13 of 1990 serves as primary legislation for the transportation of petroleum products. This Act empowers the Minister of Mines and Energy to regulate, by including the imposition of duty, or prohibit the transportation of petroleum products, and to regulate or prohibit the publication, releasing, announcement, disclosure, or conveyance to any person of information or the making of comment regarding the transportation of petroleum products.

The Regulations promulgated under the Act provide predominantly for downstream storage specifications and standards for petroleum products storage tanks and pipework at service stations and consumer installations. The storage specifications and standards are applicable to equipment used in the transportation of various petroleum products. Transportation of petroleum products is regulated through a permitting by volume system. The Regulations further provide for the statutory application forms to be completed for such permits.

There is no regulatory treatment for inter- or intra-regional pipeline systems in Namibia, apart from the necessary and applicable consents to be obtained from affected landowners and necessary construction and environmental permits and authorisations needed for the implementation of such projects.

At present, there are no third-party access regimes/rights applicable in Namibia in respect of oil and natural gas transportation and the associated infrastructure.

In terms of the Regulations, no person may:

• operate a retail outlet or conduct the business of a wholesaler unless authorised to do so under a retail licence or a wholesale licence, respectively; or
• operate a consumer installation unless authorised to do so under a certificate.

Criminal sanctions may follow should a person fail to comply with these provisions.

No retail licence-holder may dispense any fuel directly into the tank of a fuel-driven vehicle or vessel other than against payment in cash, and no person may receive fuel from a retail licence-holder dispensing it to the person directly into the tank of such vehicle or vessel other than against payment in cash.

There are no limitations on concurrent ownership or the use of intermediaries.

Crude Oil

No provision is made for cross-border sales and deliveries of crude oil or crude oil products under the Petroleum Act.

Although the price-setting regime for crude oil products is not regulated under the Petroleum Act, the Model Form Petroleum Agreement typically provides that crude oil produced and saved from the licence area may be sold or otherwise disposed of at competitive market prices, ie, a sale between a willing purchaser and a willing seller acting in good faith. In the event of any dispute arising between the licence-holder and the Minister of Mines and Energy concerning the pricing of crude oil, the dispute will be resolved by a sole expert to be appointed by agreement between the parties or, failing agreement, by the president of the British Institute of Petroleum.

Used Mineral Oil

The Regulations published in terms of the Petroleum Products Act deal with the transportation of refined petroleum. The Regulations, however, only require permits for the transportation, possession, and storage of used mineral oil in certain containers, not crude oil. “Used mineral oil” means all mineral oil withdrawn from its original use and contaminated by foreign matter through this use. Regulations published in terms of the Petroleum Products Act also deal with the transport of oil. The Regulations provide for transport facilities and the transport, storage, and use of hazardous substances.

Petroleum Products (Downstream)

In terms of the Petroleum Products Act, only wholesalers are allowed to import applicable petroleum products for purposes of the wholesale thereof by that person in Namibia or who exports such applicable petroleum products (see 3.3 Issuing Midstream/Downstream Licences). The importation of petroleum products are regulated by the Customs and Excise Act 20 of 1998 and it allows for imposition of levies at importation and certain rebates and refunds due to loss through evaporation.

Export Levy

The Export Levy Act 2 of 2016 provides for the imposition of an export levy on certain goods. A 1.5% rate is levied on unrefined crude oil of all types exported from Namibia. Refined oil of all types carries a zero rate.

A wholesale licence or certificate is not transferable. A retail licence is not transferable except by way of amendment of the licence.

The Petroleum Products Act does not make provision for the assignment of interests in retail and wholesale licences. No government approvals are, however, required for the sale of shares in a company that owns a licence.

International Treaties and Protocols

Namibia has signed, acceded to, and ratified numerous international treaties and protocols which affect the application of its domestic laws. Article 144 of the Namibian Constitution provides that the general rules of public international law and international agreements binding upon Namibia under the Constitution form part of the law of Namibia.

The legal authority to expropriate is provided for in Article 16(2) of the Namibian Constitution. The Article empowers the state, or any competent body or organisation authorised by law, to expropriate property in the public interest, subject to the payment of just compensation. Accordingly, the requirements of expropriation involve public interest and just compensation authorised by law. Expropriation may be consensual or, where necessary, forced. Forced expropriation is only possible in matters involving land rights.

The government does not generally accede to stabilisation or economic rebalancing provisions in petroleum agreements. There are, however, no statutory limitations imposed on the government to agree to such terms.

Negotiation

The Model Form Petroleum Agreement provides that any dispute arising between the parties relating to the construction, meaning, or effect of the agreement, or the rights or liabilities of the parties in terms of the agreement, must first be resolved amicably by negotiation.

Arbitration

If the Minister and the licence-holder fail to resolve a dispute by way of negotiation, either party may submit the dispute to arbitration for final settlement.

Any unresolved dispute will finally be settled by arbitration in accordance with the Arbitration Rules of the UN Commission on International Trade Law in force on the date on which the agreement is signed. This arbitration, unless the parties agree otherwise, will usually take place in London, England. As far as is practicable, the Minister and the company will continue to implement this agreement while the arbitration is pending and during arbitration.

There are no restrictions on foreign investment in hydrocarbons.

Namibia is a UN member state and has an obligation to comply with UN Security Council (UNSC) Resolutions. The sanctions issued by the UN are considered and composed by the Security Council, under the authority of Article 41, Chapter VII of the UN Charter.

That said, Namibia has no sanctions in place with respect to investing in oil and gas assets in certain foreign jurisdictions, or conducting business in the oil and gas sector with certain foreign counterparties or governments, or in certain foreign jurisdictions.

Environmental Management Act

The Environmental Management Act 7 of 2007 (EMA) requires holders of petroleum licences to be issued with environmental clearance certificates before they commence activities in terms of their licences. The EMA is accompanied by two sets of regulations. The first set of regulations lists the activities that may not be conducted without an environmental clearance certificate, published according to the terms of Section 27 of the EMA. The second set deals with environmental impact assessments (the “EIA Regulations”) and was published according to the terms of Section 56 of the EMA. The state is also bound by the EMA.

A Competent Authority

A “competent authority” refers to an organ of state which is responsible, under any law, for granting or refusing an authorisation, including a competent authority identified in terms of the EMA. For example, the Minister of Mines and Energy is the relevant competent authority in respect of mineral and petroleum exploration and production operations. An “authorisation” refers to an approval, licence, permit, or other authorisation by a competent authority in respect of a listed activity.

Where no person or authority is charged with the responsibility of granting authorisations in respect of a listed activity according to the terms of any other law, the Minister must, in the same notice that lists the activities that may not be undertaken without an environmental clearance certificate, identify a person or authority who or which is responsible for granting authorisation in respect of that activity. The Minister may be identified as the competent authority. The Minister may also agree with an organ of state that applications for environmental clearance certificates in respect of which the Minister is identified as the competent authority, may be dealt with by that organ of state.

Environmental Clearance Certificate

Before submitting an application for an environmental clearance certificate, the proponent must determine whether the activity for which the clearance certificate is required is in fact a listed activity. In order to do so, the proponent may consult with the Environmental Commissioner, the competent authority, or any relevant guidelines. If the proponent has determined that the proposed activity is a listed activity, they must apply for an environmental clearance certificate. The acquisition of seismic data and the drilling of wells are accepted to be listed activities and, as such, require environmental clearance certificates before commencement of such projects.

Application for this certificate must be made by the proponent on the prescribed form and in the prescribed manner (accompanied by the prescribed fee) to the relevant competent authority.

The proponent must designate an environmental assessment practitioner (EAP) to manage the assessment process. The EAP must have knowledge of, and experience in, conducting assessments, including knowledge of the EMA and the EIA regulations and guidelines that have relevance to the proposed activity.

Public Consultation Process

After submitting an application for an environmental clearance certificate, the proponent must conduct a public consultation process, which must be completed within 21 days. This process must be conducted whether or not an assessment is required. The person conducting the public consultation process must give notice of the application to all potential interested and affected parties so that the application can be subject to public consultation.

The proponent must consider all objections and representations received from interested and affected parties following the public consultation process and subject the proposed application to scoping by assessing the potential effects of the proposed listed activity on the environment, whether and to what extent these potential effects can be mitigated, and whether there are any significant issues and effects that require further investigation.

After submission of an application for an environmental clearance certificate, the proponent must prepare a scoping report and give all interested and affected parties an opportunity to comment on the scoping report.

A registered interested or affected party is entitled to comment, in writing, on all written submissions made to the Environmental Commissioner by the applicant responsible for the application. The party may also bring to the attention of the Environmental Commissioner any issues which they believe may be of significance to consideration of the application, as long as comments are submitted within seven days of notification of an application or of receiving access to a scoping report or an assessment report, or of the interested and affected party disclosing any direct business, financial, personal, or other interest which that party may have in the approval or refusal of the application.

Before the applicant submits a report compiled in terms of the EIA Regulations to the Environmental Commissioner, the applicant must give registered interested and affected parties access to, and an opportunity to comment in writing on, the report. Here, the “report” includes scoping reports, amended and resubmitted scoping reports, assessment reports, and amended and resubmitted assessment reports.

Any written comments received by the applicant from a registered interested or affected party must accompany the report when it is submitted to the Environmental Commissioner. A registered interested or affected party may comment on any final report that is submitted by a specialist reviewer for the purposes of the EIA Regulations where the report contains substantive information which has not previously been made available to a registered interested or affected party.

The applicant responsible for an application must ensure that the comments of interested and affected parties are recorded in reports submitted to the Environmental Commissioner in terms of the EIA Regulations. Comments by interested and affected parties on a report which is to be submitted to the commissioner may be attached to the report without recording those comments in the report itself.

The 1999 Regulations published according to the terms of the Petroleum Act deal with the health, safety, and welfare of persons employed, and the protection of other persons, property, the environment and natural resources, in, at, or in the vicinity of exploration and production areas. These regulations are administered by the MME and are binding on all licence-holders. Extensive employee health and safety regulations published in terms of labour legislation are also applicable and binding on all employers. These regulations are administered by the Ministry of Labour. They require, among other things, that a health and safety representative be appointed. Penalties range from fines to potential criminal liability and imprisonment.

The Petroleum Act deals with decommissioning. According to its terms, an application for a petroleum licence must contain a proposed programme of production operations and of the processing of the petroleum in question, which must include separate decommissioning plans in respect of the production area, and any area outside the production area, within which activities in connection with the production operations are being carried out. This must set out to the satisfaction of the Minister of Mines and Energy (acting in consultation with the Minister of Environment and Tourism, the Minister of Fisheries and Marine Resources, and the Minister of Finance), the measures proposed to be taken after cessation of the production operations to remove or otherwise deal with all installations, equipment, pipelines, and other facilities, whether onshore or offshore, erected or used for the purposes of the operations, and to rehabilitate land disturbed by way of the operations. It must include:

• the estimated date by which such decommissioning will occur;
• the extent of the decommissioning;
• the manner in which the decommissioning will take place;
• the estimated costs of the decommissioning; and
• such other measures or information as the Minister may require.

Review and Revision of the Decommissioning Plan

On a date one year before the estimated date on which 50% of the estimated recoverable reserves of petroleum in the production area would have been produced, the holder of the production licence must review and, if necessary, revise the decommissioning plan. The Minister may, acting in consultation with the Minister of Environment and Tourism, the Minister of Fisheries and Marine Resources, and the Minister of Finance, approve the reviewed or revised decommissioning plan or refer it back to the holder of the production licence concerned to make such amendments as the Minister may deem necessary.

Trust Fund

On a date before the estimated date on which 50% of the estimated recoverable reserves of petroleum in the production area would have been produced, the holder of a production licence must establish a trust fund for the purposes of decommissioning facilities. A separate trust fund must be established in respect of the decommissioning of facilities in any area outside the production area where the facilities are used in connection with the production operations of the holder of the production licence in question. The decommissioning trust funds are exempt from all taxes, except those imposed according to the terms of the Petroleum Taxation Act. 

The holder of the licence is responsible for meeting the full costs of decommissioning in accordance with the decommissioning plan, notwithstanding the fact that there may be a shortfall between the full costs and the accumulated amount in the trust fund.

Namibia became a signatory of the Paris Agreement on Climate Change in New York, on 22 April 2016. However, there are no climate change laws in effect in Namibia.

Local authorities do not have the power to limit oil and gas development for environmental or other reasons.

However, under Section 16 of the Petroleum Act, the holder of a petroleum licence may not exercise any of the rights in terms of the licence in, on, or under any town or village, land comprising a public road, aerodrome, harbour, railway or cemetery, or land used or reserved for any government or public purpose, except with the approval of the Environmental Commissioner granted by notice in writing and subject to such conditions as may be specified in the notice. Furthermore, the holder of a licence may not, except with the permission of the owner of the land or works on which it proposes to exercise such right, obtained in writing in advance of every particular case, exercise any rights conferred upon them by the Petroleum Act or under any terms and conditions of a petroleum licence in, on, or under any land:

• used as a garden, orchard, vineyard, nursery, plantation, or which is otherwise under cultivation;
• within a horizontal distance of 100 metres of any spring, well, borehole, reservoir, dam, dipping tank, waterworks, perennial stream, artificially constructed watercourse, kraal, building, or any structure of whatever nature;
• within a horizontal distance of 300 metres from any point on the nearest boundary of any/every piece of land in an approved township (“erf”), as defined in Section 1 of the Townships and Division of Land Ordinance 11 of 1963, if the erf has been surveyed for the purpose of inclusion in a township as defined in that section; or
• on which accessory works, as defined in Section 1 of the Mines, Works, and Minerals Ordinance 20 of 1968, were erected under that ordinance and which existed at the time the licence in question was issued.

Finally, the holder of a petroleum licence may not exercise any of the rights conferred upon them by the Petroleum Act or under any terms or conditions of a petroleum licence in, on, or under any mining area that existed at the time of issuance of the licence in question. The Minister may, however, permit the holder in writing to exercise their rights in, on, or under a mining area, after consultation with the owner of the mining area. Permission in writing from the Minister must be obtained in every case.

There are no special schemes, laws or regulations relating to unconventional upstream interests in Namibia under the Petroleum Act.

No special scheme relating to LNG projects is in place under the Petroleum Act.

The mandate of the MME remains to take custody of the diverse geological, mineral, and energy resources of Namibia, and to ensure their contribution to the country’s socio-economic development. In so doing, its vision is to provide access to Namibia’s geological, mineral, and energy resources for the sustainable economic growth, equal benefit, and prosperity of all Namibian citizens.

In the context of the energy transition narrative, the government of the Republic of Namibia has recognised Namibia’s potential to become a global renewable energy powerhouse given its unique endowment of renewable resources and vast land area. In so doing, apart from other renewable energy resources, the government has become invested in exploring opportunities in low-cost green hydrogen production.

Notwithstanding this strategic positioning, the government remains supportive of, and seeks to attract more investment in, oil and gas exploration and production, locally, regionally, and internationally, to ensure a more diversified economy in Namibia.

The Existing Governance and Institutional Framework

The Ministry of Environment and Tourism (MET) has been designated as the government agency responsible for the co-ordination and implementation of climate policies and measures that will have an effective response to climate change in the interest of the country to protect present and future development gains and with respect to the fulfilment of the country’s obligations under the UN Framework Convention on Climate Change (UNFCCC). However, the Office of the Prime Minister (OPM) is envisaged to take on a co-ordinating role in the future. The Namibia Climate Change Committee (NCCC), a broad-based multi-stakeholder committee, was established in 2001 following work of an ad hoc committee (the Climate Change Advisory Committee) led by the Directorate of Environmental Affairs (DEA) in the MET. The NCCC was tasked to advise the government with respect to its roles and responsibilities under the UNFCCC as well as to co-ordinate the overall national climate change programme.

National Policy on Climate Change for Namibia (2011) (“the Policy”)

The Namibian government has identified the opportunity underlying the worldwide drive to stabilise greenhouse gas concentrations in the atmosphere and the increased importance of alternative energy sources such as solar, wind, and biomass, with which Namibia is particularly well-endowed. Financial provisions under the UNFCCC, such as the Clean Development Mechanism (CDM), Green Climate Change Fund, Special Climate Change Fund, and Adaptation Fund, have been identified as opportunities to leverage much-needed investments into these areas.

The MET has, as a first step through this Policy, taken the lead role in co-ordinating this process. The Policy lays out a number of principles that aim to guide the process, while also outlining the roles and responsibilities of the relevant stakeholders to ensure the effective implementation of the Policy.

The Policy pursues constitutional obligations of the government, namely for “the state to promote the welfare of its people and protection of Namibia’s environment for both present and future generations.” The Policy seeks to outline a coherent, transparent, and inclusive framework on climate risk management in accordance with Namibia’s national development agenda, legal framework, and in recognition of environmental constraints and vulnerability. Similarly, the Policy takes cognisance of Namibia’s comparative advantages with regard to the abundant potential for renewable energy exploitation. The goal of the Policy is to contribute to the attainment of sustainable development in line with Namibia’s Vision 2030 through the strengthening of national capacities to reduce climate change risk and build resilience for any climate change shocks.

Namibia signed and ratified both the UNFCCC and the Kyoto Protocol. As a non-Annex I Party to the Protocol, Namibia is not bound by specific targets for GHG emissions; however, a number of global initiatives are being implemented, through donor and other support, to assist in the operationalisation of the UNFCCC. To ensure sustainable development while taking into account the issues of climate change, the government will:

• continue to play a proactive role to ensure the protection of the regional and global environment and co-operate with the international community in promoting adaptation and mitigating strategies;
• align with and strictly enforce the existing international climate change legislative and regulatory framework; and
• align with the Bali Road Map, Nairobi declaration, and Bonn Agreement.

Institutional arrangements for policy implementation

The Cabinet of Namibia is the government agency responsible for approving policies. The Parliamentary Standing Committee on Economics, Natural Resources, and Public Administration advises the Cabinet on relevant policy matters. While the MET is responsible for all environmental issues in the country, it is also the Climate Change Co-ordinating Ministry through the Climate Change Unit (CCU) established within the MET. The CCU is supported directly by a formalised multi-sectoral National Climate Change Committee (NCCC) for sector-specific and cross-sectoral implementation and co-ordination advice and guidance. The CCU assists directly with the planning, development, implementation, and co-ordination of climate change activities at local, regional, and national levels.

In order to implement the Policy, a comprehensive National Climate Change Strategy and Action Plan 2013 to 2020 (NCCSAP) was developed through a comprehensive consultation process with relevant stakeholders.

The structure of the NCCSAP has been developed around four key pillars namely planning, adaptation, mitigation, and cross-cutting issues. Under each pillar there are different themes. The NCCSAP outlines activities to be carried out within various sectors to adapt to, and mitigate against, climate change.

The development of the NCCSAP is based on the guiding principles outlined in Namibia’s National Policy on Climate Change (NPCC). These principles provide guidance for a response to climate change that is nationally appropriate, effective, efficient, fair, non-discriminatory, and timely.

Principle 1

Mainstreaming climate change into policies, legal framework, and development planning. The government of Namibia recognises the need to prioritise climate change issues and integrate climate change into sectoral policies, as well as mainstream climate change into development planning to ensure that it is addressed at appropriate levels at all times.

Principle 2

Sustainable development and ensuring environmental sustainability. The government recognises the need for Namibia to develop in a way that does not compromise the ability of current and future generations to meet their needs.

Principle 3

Stakeholder participation in climate change policy implementation. The government recognises the importance of meaningful participation in the planning, development, and implementation of climate change activities at local, regional, and national levels. The partnering with non-governmental organisations (NGOs), academic institutions, community-based organisations (CBOs), and faith-based organisations, and the private sector, in climate change adaptation and mitigation is integral to the successful implementation of the Strategy.

Principle 4

Awareness generation, education, training, and capacity building are building blocks. The need for, and importance of, raising awareness, building capacity, and empowering stakeholders at local, regional, and national levels and at the individual, institutional, and systemic levels to ensure a collective and timely response to climate change is emphasised. There is also a need to appropriately integrate climate change into the education system to generate awareness and capacity at the early stages of educational development in the country.

Principle 5

Development should be based on notions of human rights and equity. The government of Namibia advocates for the practising of human-rights-based development in accordance with national and international law at all times during implementation of climate change response activities. The Strategy bases itself on the premise of human rights and well-being, considering that combating climate change will contribute to equality, poverty reduction, and sustainability.

Principle 6

Promote and address “adaptation” and “mitigation” as key approaches. The government advocates for the development of adaptation and mitigation measures that will reduce Namibia’s vulnerability to climatic variability and change, while addressing the needs of the most vulnerable social groups and sectors.

Principle 7

Promote public-private partnerships (PPPs) to foster involvement of all sectors in sustainable development. The government will encourage the development of PPPs contributing to climate change adaptation and mitigation. The private sector has a strong role to play, including investment, development, and transfer of technology for climate change adaptation and mitigation, as well as capacity building.

Under the agenda of “Adaptation”, forestry is acknowledged and the government has taken note of the changes in a variety of ecosystems already detected, particularly in Southern African ecosystems at a faster rate than anticipated. The Zambezi and Kavango regions are the most forested regions in the country. These forests form a very important part in sustaining peoples’ livelihoods as they are utilised both for wood and non-timber products. It has been noted that with climate change and deforestation, the distribution and population of tree and shrub species will be affected as well as their occurrence in specific areas.

In this regard, under the theme “adaptation”, the strategic aims serve to implement conservation measures to utilise sustainable forest resources for food security, and are being implemented at community level, building climate change resilience.

Under the theme “mitigation”, the government aims to promote clean energy sources and reduce GHG emissions from land use, land-use change, and forestry (LULUCF), including the agriculture sector and enhancing the GHG sink through the promotion of agroforestry, afforestation of deforested landscapes, and conservation of forests and forest resources.

Notwithstanding the strategic aims, the firm is not adequately equipped to advise exactly as to which level the government has progressed with respect to the implementation/status of the REDD+ framework in Namibia, according to the UNFCCC requirements.

As a signatory to the UNFCCC since 1995, Namibia is obligated to prepare and submit Biennial Update Reports (BUR) to the UNFCCC. Namibia last submitted a report to the UNFCCC in 2014. The author was unable to establish whether subsequent reports due were submitted.

Legal framework

Domestic law

• Environmental Management Act 7 of 2007: this Act (GG 3966) provides a framework for decision-making on matters affecting the environment, to promote sustainable management of the environment. It provides a process for environmental assessment and control and establishes a Sustainable Development Advisory Council and provides for the appointment of an Environmental Commissioner and environmental officers. The Act was brought into force on 6 February 2012 by GN 28/2012 (GG 4878).
• Forest Act 12 of 2001: this Act (GG 2667) consolidates the laws relating to the use and management of forests and forest produce, provides for the control of forest fires, and creates a Forestry Council.
• Environmental Investment Fund of Namibia Act 13 of 2001: this Act (GG 2669) establishes an Environmental Investment Fund of Namibia to be used to support sustainable environmental and natural resource management.

Regional law

• SADC Protocol on Forestry, 2002; and
• *SADC Protocol on Environmental Management for Sustainable Development, 2014.

International law

• UN Framework Convention on Climate Change, 1992;
• Kyoto Protocol to the UN Framework Convention on Climate Change, 1997;
• *Doha Amendment to the Kyoto Protocol to the UN Framework Convention on Climate Change, 2012; and
• Paris Agreement, 2015.

During February 2022, TotalEnergies and Shell made significant light oil and associated gas discoveries off the coast of Namibia. Both projects have progressed to the appraisal stage, to determine the commercial interests of these discoveries. In February 2023, Shell made a further discovery.

In due course, more information should emerge concerning particulars of such appraisal and determination.

The aforesaid discoveries are the first since Chevron Texaco’s discovery of the Kudu gas field off the Namibian coast in 1974.

During November 2018 the MME began a consultative process with industry stakeholders to introduce various amendments to the Petroleum Act, and new regulations to be promulgated under the proposed amendments. The industry has made submissions regarding the proposed amendments and regulations and is at present awaiting the MME’s feedback. The consultative process is still to be finalised and the proposed amendments are yet to be promulgated.