Petroleum Bill Passes Second Reading But Still Faces Key Steps

The petroleum bill passed its second reading in the National Assembly on October 20.

On October 20, the bill passed its second reading in the National Assembly, marking only one step in a longer legislative process. Several stages still lie ahead before it can take effect.

How a Bill Becomes Law in Namibia

Before any law is made, the National Assembly operates under its Standing Rules, Orders and Internal Arrangements, which are publicly available on parliament.na. These rules govern who may speak, for how long, how amendments are proposed, and how votes are conducted. The House may set a Rule aside only by a 75% majority of all voting Members.

A bill is first tabled and read once without debate. During the second reading, the assembly debates the bill’s principles, not its exact wording. A yes vote agrees with the general idea, not the specific text. Under Standing Rule 181(1), the bill is then referred to the Committee of the Whole House.

In committee, any member may propose amendments on the floor without prior notice. Amendments must not contradict the principle agreed upon during the second reading but may introduce safeguards. The clauses are examined in sequence, with the title addressed last, per Standing Rule 182(4).

The Chairperson of the Whole House must then report the Bill to the House “with or without amendments” (Standing Rule 189(1)). If the Bill was amended, “a day must be appointed” for its third reading (Standing Rule 189(4)(a)). Only a Bill reported without amendments “may proceed to its third reading immediately” (Standing Rule 189(5)).

Third reading is a distinct stage where the speaker puts the question: “That the bill be now read a third time,” or “as amended” if changes occurred, according to Standing Rules 190(1) and (2). The bill becomes law only when the assembly agrees, as stated in Standing Rule 190(5). That question belongs to the Speaker, not to the Chairperson in Committee.

Where the Petroleum Bill Currently Stands

The second reading of the Petroleum Amendment Bill (B.12) passed on October 20, with most opposition members walking out in protest. Among the opposition parties, only NEFF stayed and voted with SWAPO, supporting the ruling party. The UDF, which usually also votes with SWAPO, was absent that day.

Committee Stage began on October 21, but the bill has not yet completed the remaining steps. It has not undergone a third reading, has not been reviewed by the National Council, has not received the president’s signature, and has not been published in the Government Gazette. None of these final stages have concluded.

What the Bill Would Change

The bill proposes transferring authority over Namibia’s oil resources from the Minister of Industries, Mines and Energy to the president. Three clauses warrant close examination. First, Clause 3 allows the President to delegate the power to grant royalty relief to the Vice-President, the Prime Minister, a Minister or the Director-General. The Bill does not require that delegation to be published.

Second, Clause 4 establishes a Director-General of a new Upstream Petroleum Unit responsible for granting oil licenses. The office has no fixed term. The Director-General declares his or her interests to the President alone, and no register of those interests is published. Clause 9 gives the President the decision on royalty relief, after consulting the Minister of Finance. That advice does not have to be published.

Royalty relief represents funds the state forgoes, giving Namibians a clear interest in understanding who makes these decisions and based on what advice. A minister regularly answers questions in the assembly, but the president rarely does. Transferring power from a ministry to State House reduces members’ opportunities for questioning, making the law itself responsible for ensuring transparency.

Oversight Concerns Raised by the Opposition

During the Committee Stage, opposition members are introducing plain safeguards to ensure accountability. These measures do not remove any presidential authority but aim to increase visibility into how that power is exercised. The oil belongs to the people of Namibia, as does their parliament.

Rules Adoption and Legislative Process Context

The current Standing Rules were adopted on 9 July 2024 by the outgoing Seventh Parliament, eight months before the Eighth Parliament was sworn in on 20 March 2025. This timing means the rules in effect were set before the current House could determine its own procedural framework. The Speaker has indicated that the Standing Rules require attention, but no changes have been made, as the existing rules benefit SWAPO’s position.

The resulting deadlock prevents consensus from being reached on necessary reforms. Opposition members are now working in Committee to place plain safeguards on the record, particularly regarding royalty relief decisions that involve state funds. Since such relief represents money the State gives up, Namibians have an obvious interest in knowing who decides and on what advice, even when that advice is not publicly published.