This opinion piece is urgent following oil discoveries announced by
Therefore, I have to clarify President
Regrettably, the clarification by the President, led to an unnecessary outcry, with some suggesting that the Government did not have the interest of the nation at heart. The contrary is true, our planning initiatives demonstrate the strides we have made as a country. Still, it is important to locate the ownership debate. The discoveries in question were followed by intensive drilling operations in two wells located 300 KM southwest of the Port of Lüderitz and in some of the deepest waters in the world.
So, what are the issues at hand? A cursory overview of the applicable legal instruments is paramount for a common understanding of the differences between ownership on the one hand, and rights and obligations on the other. Erring on the side of caution, we will do ourselves a disservice should we not provide clarity to citizens regarding the issuing of petroleum exploration licenses to oil companies.
The Petroleum Act of 1991 is the principal legislation governing operations in the petroleum sector, with supporting Petroleum Agreements and Joint Operating Agreements. Relating to rights, Section 2 of the Act is clear: "Subject to any right conferred under any provision of this Act all rights in relation to the reconnaissance or exploration for, production and disposal of, and the exercise of control over, petroleum vests, notwithstanding any right of ownership of any person in relation to any land under which petroleum is found, in the State".
The only other time when the rights are conferred to a third party is when such party has been issued with an exploration license or production license. Reference to the aforesaid can be found in Sections 29 and 44 of the Act. In the case of
Without a doubt, Article 100 of the Namibian Constitution states that ownership of all resources, including oil and gas within the borders of
Conscious of Article 100,
Our constitution qualifies
Once discovery is confirmed, an additional three to four wells are required to determine if the discovery is commercial or not. Around N$ 30 billion has been spent since independence to search for oil. No one would cheer any sitting President to continue spending such sums of money of taxpayer's monies without the prospects of discoveries. While we are only reflecting on the
As an investment destination, private companies must be treated in accordance with the law, even if they have found oil. More so after the huge sums of money invested in the venture and the risks they have been subjected to.
We should be excited about these discoveries. Profound pragmatism on our part as a country is needed and we should take due regard to the value that will accrue to
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