Landless People’s Movement parliamentarian Henny Seibeb is set to formally question minister of mines and energy Tom Alweendo on the awarding of mining exploration rights near an area where oil has been discovered off the southern Namibian coast.
Seibeb is set to question Alweendo on a licence granted to Zambezi Exploration (Pty) Ltd, despite its application having lapsed.
“The Namibian Petroleum (Exploration and Production) Act of 1991 does not provide for an appeal procedure to an applicant after his application has been deemed lapsed or unsuccessful, nor does it provide the minister powers to resuscitate an application which has lapsed or is deemed unsuccessful,” he said in parliament on Tuesday.
The mines ministry awarded block 2812A to Zambezi Exploration (Pty) Ltd on 8 December 2022.
As a condition of the award, Zambezi Exploration was required to submit a bank guarantee to prove financial capability within 30 days of signing the petroleum award agreement.
Failure to submit the guarantee would result in the termination of the award.
The awarded company failed to submit a bank guarantee and was granted an extension a week after the submission deadline had passed.
Despite the mines ministry granting Zambezi Exploration an 18-day extension, the company failed to submit a bank guarantee.
Four months after this, Alweendo amended the petroleum agreement, extending the awarding expiration date to 29 September.
The applicant was granted another extension until 14 November.
Executive director of mines and energy Bryan Eiseb this week told The Namibian all licences are issued with due diligence in line with Namibian petroleum laws and provisions.
“The ministry awards all its licences meritoriously and in compliance with the law,” he said.
Seibeb said the amendment to the petroleum agreement for block 2812A and the associated extensions have unfairly advantaged Zambezi Exploration.
“Red Soil Energy and Exploration [was] not afforded the same treatment as the applicant of 2812A,” he said.
In February, Red Soil took the minister to court over a failed application to obtain a licence for other blocks in the same area.
The application was rejected because Red Soil failed to demonstrate its technical and financial capability.
Red Soil believed it was unfairly treated by the ministry.
In court documents, Alweendo denied allegations that he awarded block 2812A to the successful applicant without any financial capability.
The court ruled in favour of the minister on 18 August.
Seibeb will question Alweendo regarding this matter on 23 November.
Leave a Reply