Namibia’s President Orders Urgent Legal Review of Controversial Oil License Renewal Scandal
President Netumbo Nandi-Ndaitwah of Namibia has ordered an urgent legal review of the controversial renewal of Paragon Oil & Gas’s petroleum exploration licence, triggering a high-stakes investigation that could implicate senior government officials in regulatory violations.
The petroleum exploration licence, known as PEL 37, has become the center of a political firestorm after the president requested the attorney general to provide a legal opinion on the renewal amid concerns that it violated petroleum regulations. The oil block resurfaced in the news as one of the key reasons the president fired former industries, mines and energy minister Natangwe Ithete.
Insiders reveal that the licence was renewed for four years, significantly exceeding the two-year limit for a third renewal stipulated under petroleum regulations, potentially implicating petroleum commissioner Maggy Shino in the scandal. The licence gained renewed attention after businessman Knowledge Katti’s Sintana Energy announced it paid N$16 million to negotiate for the right to purchase a stake in PEL 37, an oil exploration licence in the Atlantic Ocean close to Walvis Bay.
State House confirmed that the matter is under review, with presidential spokesperson Jonas Mbambo stating that it forms part of ongoing internal processes within the government being handled through appropriate institutional and legal channels. Attorney general Festus Mbandeka declined to comment, citing attorney-client privilege and professional ethics regarding privileged communications.
At the heart of the legal review is the process of extending the licence and the number of years granted to Paragon for oil exploration. The attorney general’s opinion will examine the conduct of fired minister Ithete and petroleum commissioner Shino’s role in the approval process.
According to the 1991 Petroleum Act, exploration licences are granted for an initial period of four years, with the possibility of renewal for an additional two years. The act explicitly states that an exploration licence shall not be renewed on more than two occasions. A third renewal is permissible only if the minister of mines believes it serves the country’s interest, but such renewal cannot exceed two years under any circumstances.
Paragon has been attempting to renew the licence for PEL 37 since 2021, when Tom Alweendo served as minister of mines and energy. Alweendo refused to renew the licence, and despite alleged escalation to former president Nangolo Mbumba, he maintained his position. Ithete was appointed as mines minister in March of last year and approved Paragon’s licence in July 2025, despite President Nandi-Ndaitwah’s explicit directive against renewals or oil block allocations without consultation.
President Nandi-Ndaitwah revealed during a closed-door meeting with mines and energy ministry staff that she had instructed the minister that there should be no renewal and no oil block allocation unless they consulted one another. Despite this clear directive, Ithete proceeded with the approval, leading to his dismissal months later. While officials cited multiple reasons for his removal, sources indicate the Paragon decision was a significant trigger.
A July 22, 2025 memo addressed to Nandi-Ndaitwah raised serious regulatory concerns over the third renewal of PEL 37 granted to Paragon Oil & Gas. The memo outlined how Paragon, previously a local partner to Tullow Oil PLC, lost its rights to PEL 37 in 2021 after allegedly failing to respond to an official notice from the mines and energy ministry. At the end of its second renewal period on March 27, 2021, Tullow relinquished its interest and did not seek a third renewal. Paragon failed to respond within the stipulated timeframe, and the licence was lawfully cancelled, according to the memo.
Petroleum commissioner Shino promised to respond to media questions, while attempts to reach Desmond Amunyela, co-owner of Paragon Oil & Gas, for comment were unsuccessful as he ended the call when contacted by reporters.
Source: allafrica.com
