President Netumbo Nandi-Ndaitwah has asked the Attorney General to provide a legal assessment of the recent renewal of Paragon Oil & Gas’ petroleum exploration licence (PEL 37), amid ongoing questions about the process.
The licence, which covers an oil block off the coast near Walvis Bay, has drawn attention after it was renewed for four years, despite petroleum regulations allowing a third renewal for a maximum of two years. The decision has raised concerns over whether proper procedures were followed.
The controversy first surfaced last year when former Mines and Energy Minister Natangwe Ithete was dismissed. Reports suggest that his approval of Paragon’s licence, against a temporary ban on renewals and without presidential consent, contributed to his firing. Petroleum Commissioner Maggy Shino’s involvement in the case has also come under scrutiny.
The licence regained public attention recently when businessman Knowledge Katti’s Sintana Energy disclosed it paid N$16 million for negotiations to acquire a stake in PEL 37. State House confirmed the matter is under review, with spokesperson Jonas Mbambo stating that it is being handled through “appropriate institutional and legal channels.”
Attorney General Festus Mbandeka declined to comment, citing attorney-client privilege. Meanwhile, Paragon Oil & Gas co-owner Desmond Amunyela ended a call with reporters when approached for comment.
Under Namibia’s 1991 Petroleum Act, exploration licences are initially granted for four years and can be renewed twice for two years each. A third renewal is allowed only if deemed in the country’s interest and cannot exceed two years. Critics say Paragon’s four-year extension may have exceeded these limits.
Paragon has sought to renew PEL 37 since 2021, when former Minister Tom Alweendo denied the request. Allegations indicate that Paragon failed to respond to official notices after Tullow Oil PLC relinquished its stake, leading to a lawful cancellation of the licence.
The legal review will examine the conduct of both Ithete and Shino, and whether the licence renewal complied with the Petroleum Act. A response from relevant officials is expected soon.
