Namibia Petroleum Licences, Rights and Permits

By | February 5, 2020
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How to get a Namibia Petroleum Licence, Right and Permit

An upstream petroleum licence grants its holder petroleum exploration and production rights. Companies that are granted these licences are able to explore for oil and gas both onshore and offshore in Namibia.

Overview

This article is an initiative of the Ministry of Mines and Energy aimed at explaining the types of licenses and permits administered and issued by the Ministry and the application and evaluation processes followed by the Ministry in granting licenses.

The expected outcome of this document is to give possible investors, project proponent and interested parties a quick overview and understanding of how licensing of mining and energy permit activities are undertaken by the Ministry in the context of the relevant legislative framework.

PETROLEUM LICENCES

1. Petroleum Upstream Licences

Petroleum upstream licences are provided for under the Petroleum (Exploration and Production Act, 1991 and are administered by the Petroleum Commissioner.

1.1. Why should you apply for an upstream petroleum licence?

An upstream petroleum licence grants its holder petroleum exploration and
production rights. Companies that are granted these licences are able to explore for oil and gas both onshore and offshore in Namibia.

1.2. Types of Petroleum Upstream Licences

(a) Reconnaissance Licences

A reconnaissance licence allows its holder to carry on reconnaissance operations subject to terms and conditions as stipulated under Section 22-28 of the Petroleum Exploration and Production Act, 1991. A reconnaissance Licence is non-exclusive.

(b) Exploration Licence

An exploration licence allows its holder to carry on exploration operations exclusively in the block(s) to which it relates subject to the terms and conditions and in the block(s) as may be specified in such Licence as stipulated under Section 29-38 of the Petroleum (Exploration and Production) Act, 1991.

(c) Production Licence

A production licence allows its holder to exclusively carry on production operations on the block(s) to which that licence relates and to sell or dispose of petroleum recovered within such block(s) and any other activities as stipulated under subsections 39-43 of the Petroleum (Exploration and Production) Act, 1991.

1.3. How to apply for Petroleum Upstream Licences

There are no prescribed application forms to be completed when applying for petroleum upstream licences. The applications are to be compiled in accordance with the following guidelines:

(a) Applications for a Reconnaissance Licence

An application for a reconnaissance licence shall be made in accordance with the stipulation of the Petroleum (Exploration and Production) Act, 1991, Section 24.
http://www.mme.gov.na/files/publications/d43_petroleum_act_1991.pdf

(b) Applications for an Exploration Licence

An application for an exploration licence shall be in accordance with the stipulations of the Petroleum (Exploration and Production) Act, 1991, Section 38.
http://www.mme.gov.na/files/publications/d43_petroleum_act_1991.pdf

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(c) Application for a Production Licence

A production licence shall be applied for in accordance with stipulation of the Petroleum Exploration and Production Act, 1991 Section 46.

http://www.mme.gov.na/files/publications/d43_petroleum_act_1991.pdf

1.4. What happens to the application once it is lodged?

Once submitted, applications undergo the evaluation process as described below.
Evaluation of Applications

(a) An Inter-Ministerial Government Negotiating Team (GNT), chaired by the Ministry of Mines and Energy, evaluates each application, taking the following aspects into consideration:

  • the technical and financial capabilities of the applicant for ensuring safe and cost-effective exploration and production of petroleum in Namibia;
  • the applicant’s willingness to perform a complete evaluation of petroleum potential in the licence area within an agreed time frame. This would include the proposed minimum work programme and expenditure;
  • the economic terms offered in accordance with the bid requirements.

(b) After evaluating the applications received, GNT will invite selected applicants to Windhoek. The invited applicants will then have the opportunity to present their application to the GNT, and negotiation of the terms of the bid will be invited.


(c) The Ministry of Mines and Energy reserves the right to accept or reject any application without any obligation to give any reasons or to otherwise justify its decision.

More information can be found in Petroleum Exploration and
Production Act, 1991 (Act 2 of 1991)

Note: The Namibian Government uses an Open Licensing System.

1.5. When do I expect to receive feedback on my application?

The Ministry will respond to your application within 3 months of receipt.

1.6. Fees payable in respect of the application for, and renewal of, licences, and for inspection of, or obtaining of copies of entries in, the register (Sections 11, 15 and 77)

Nature of application Amount of fee
Application for reconnaissance licence N$ 15000
Application for renewal of reconnaissance licence N$ 3 000
Application for exploration licence N$ 30 000
Application for renewal of exploration licence N$ 15 000
Application for production licence N$ 30 000
Application for renewal of production licence N$ 15 000
Application for transfer of reconnaissance licence N$ 30 000
Application for transfer of exploration licence N$ 30 000
Application for transfer of production licence N$ 30 000
Inspection of register N$ 300
Obtaining copy of entry in register, per copy N$ 150

1.7. What can I do if my application has been unsuccessful?

The applicant may re-apply for the same block, provided that the block is still available and open for applications during the time of the submission of such reapplication.

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2. Downstream Petroleum Licences in Namibia

The legislative framework for the downstream petroleum licences is found in the Petroleum Products and Energy Act, 1990 and Petroleum Products Regulation of 2000.

2.1. Why should you apply for a downstream petroleum licence?

A downstream petroleum licence permits a person to conduct activities and business in the industry of petroleum products. Companies and individuals who are granted these licences can import, distribute, store, sell or export petroleum products, depending on the type of licence.

2.2. Types of Downstream Licences

(a) Wholesale Licence

A wholesale sale is the sale of petrol or diesel in bulk quantities and a bulk quantity is a single quantity of 200 litres or more. A wholesale Licence allows a person to import, distribute or export petrol or diesel in bulk quantities.

Please note: An import permit is issued by the Ministry of Trade and Industry to wholesale Licence holders. However, before the import permit is issued, it must be approved by the Ministry of Mines and Energy. For more details, refer to Sections 11- 15 of the Petroleum Products Regulations of 2000.

(b) Retail Licence

A retail licence allows one to operate a retail outlet in terms of the Petroleum Products Regulations, 2000. A retail outlet is anyplace from where petrol or diesel is sold or is offered for sale to consumers/the public for purposes of use or consumption. For more details, refer to Sections 4-10 of the Petroleum Products regulations of 2000.

(c) Consumer Installation Certificate

A Consumer Installation Certificate authorizes its holder to possess diesel or petrol of more than the following quantities: 200 litres in urban areas and 600 litres in rural areas. A person is eligible to apply for the consumer installation certificate for any of the following activities: a commercial undertaking, farming or mining.

See Section 16-24 of the Petroleum Products Regulations, 2000 for further details.

2.3. How to apply for a wholesale licence, retail licence and consumer installation certificate

(a) Wholesale licence

An application is lodged by submitting a completed PP/3 application form. A
wholesale Licence shall be applied for in accordance with stipulation of the
Petroleum Products Regulation, 2000 Section 11-15.

(b) Retail licence

An application is lodged by submitting a completed PP/1 application form. A retail licence shall be applied for in accordance with stipulation of the Petroleum Products Regulation, 2000 Section 4-10.

(c) Consumer installation

An application is lodged by submitting a completed PP/5 application form. A
consumer installation certificate shall be applied for in accordance with stipulation of Section 16-24 of the Petroleum Products Regulation, 2000.

2.4. What happens to the downstream petroleum Licence applications once lodged?

Once submitted, applications undergo the evaluation process as described below.

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(a) Each application is evaluated individually by Petroleum Inspectors for technical compliance and completeness.

(b) A Licence Evaluation Committee will then table and evaluate each application, taking into consideration, amongst others, the following aspects:

  • the technical and environmental compliance to the minimum industry standards and environmental laws;
  • the issue of vertical integration;
  • economic viability in terms of retail Licences
  • the suitability of any storage facilities proposed in terms of minimum standards
  • the shareholding of the applicant company and nationality of its directors
  • any other matter relevant to the orderly provision of petroleum products in Namibia

2.5. Specific criteria for evaluation of downstream Licence applications

Wholesale Licence Retail LicenceConsumer Installation
An application will be
awarded in accordance
to the stipulations
Petroleum Products
Regulation, 2000 Section
13
An application will be
awarded in accordance
to the stipulations
Petroleum Products
Regulation, 2000 Section 6.
An application will be awarded in accordance
to the stipulations
Petroleum Products
Regulation, 2000 Section
20

2.6. When do I expect to receive feedback on my application?

The Ministry will respond to your application within 1 month of receipt of the application

2.7. Application for a Licence can be disqualified based on the following
conditions A licence will not be issued to a new applicant, nor may a new applicant hold a licence, if such an applicant:

(a) has during the five years preceding the application for the licence been
convicted of an offence under the Petroleum Products and Energy Act, 1990, or is so convicted during the currency of the licence;

(b) is not a Namibian citizen or is not lawfully resident in Namibia, or loses Namibian citizenship or the right to be lawfully resident in Namibia;

(c) is a body corporate, and is not registered in Namibia or if its registration in Namibia has been cancelled;

(d) is or becomes an un-rehabilitated insolvent;

(e) is or becomes subject to an order of competent court declaring such a person to be mentally ill or disordered (mad).

2.8. Fees for Namibia Petroleum Licences and Permits

Wholesale Licence Retail LicenceConsumer Installation
Application fee N$100
Collection fee N$1000
Application fee N$100
Collection fee N$250
Application fee N$100
Collection fee N$250

2.9. What can I do if my application has been unsuccessful?

The applicant may re-apply for the required license. Such re-application will be subjected to the same evaluation criteria described above in accordance with above-mentioned the Petroleum Laws and regulations.

GENERAL PROVISIONS

When applying for a Licence, please take the following pointers into consideration:

a. Incomplete applications will not be considered

b. Late submissions will be handled in accordance with the provisions of the respective legislations

c. The relevant application fee must be paid and a copy of the receipt submitted with the application.

d. The cashier at the Ministry operates within the hours of 9am-12pm.

CONCLUSION

The Ministry of Mines and Energy is committed to serving the public in a free, fair and transparent manner. In case of any queries, please contact the Ministry at the following

CONTACT US

Contact the Ministry of Mines and Energy for additional support on acquiring Petroleum Permits and License in Namibia

The Ministry of Mines and Energy
6 Aviation Road
Private Bag 13296
Windhoek
Email: info@mme.gov.na
Tel: +264-61-284 8111
Fax: +264-61-2848176

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