The Minister of Industries, Mines and Energy has reaffirmed to the National Assembly that decisions related to upstream petroleum activities remain firmly within the Ministry.
Modestus Amutse was responding to the Affirmative Repositioning's Professor Job Amupanda about the role of oil advisors in decision-making within the ministry.
Amupanda questioned whether decisions relating to petroleum activities are first subjected to advice or clearance from a unit at State House.
Arguing that until the Petroleum Act is amended, it remains fully applicable, and any deviation from its provisions would undermine the rule of law.
In response, Minister Amutse said while consultations take place within the Ministry's upstream petroleum unit, including with the Commissioner of Petroleum and management structures, the final decision rests with the minister.
"We have management structures as well as commissioners. The Commissioner of Petroleum is still within the Ministry of Mines and Energy. When an application is submitted, it is processed through the Commissioner of Petroleum within the upstream unit. Together with management, the upstream unit then makes recommendations to the minister on whether action should be taken or intervention is required. That is how we are handling the process for now, until such time as the law is amended.”
Concerns were also raised about oil advisors attending key industry platforms, including discussions on local content policy, instead of the minister or his deputy.
“It is really a policy issue that is not related to the upstream unit. It is more about mining in general and therefore cross-sectoral. When we talk about mineral resource beneficiation, we are referring to accommodating local interests in terms of shareholding or participation in mineral activities. That is the local content we are referring to. This is something I was promoting just last weekend in the Erongo Region. I have that mandate until such time as the law is changed. However, even if the law is amended, it will not affect that component of local content, because mining will still remain under the ministry,” Amutse added.