Oil fight spills into court

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Oil fight spills into court
Oil fight spills into court

Maria Amakali

Africa-Press – Namibia. Local exploration company Vena Gemstones and Mining (Pty) Ltd is asking the court to stop energy minister Tom Alweendo from entering into a petroleum exploration agreement with its competitor, Zambezi Exploration.

Vena is adamant it deserves the agreement, claiming its competitor scored less during a valuation process.

As such, Vena is seeking to have the court stop Alweendo from further implementing his decision to award a petroleum exploration license to Zambezi Exploration while the company waits for the high court to pronounce itself on the review application it has launched.

In court documents obtained by New Era, Vena’s managing director Nangutuwala Kalumbu said they applied for a petroleum exploration license on 22 February 2022 for blocks 2712A and 2812A in the Orange basin.

Vena argues that at the time of their application, block 2812A was not demarcated into blocks 2812Aa and 2812Ab.

The two demarcated blocks have since been awarded to Zambezi and Canadian Global, respectively, despite both companies scoring low, Kalumbu claims.

Vena was only allocated block 2712A.

Kalumbu argues this is contrary to normal ministerial practices as well as the government attorney’s opinion that a block must not be split, but that it should be awarded as is to the best candidate.

Furthermore, Kalumbu is also challenging the practice of allocating more than one block to a single company.

The Vena MD remains steadfast that his company scored 81 points out of 100, which he said makes them the foremost candidate, compared to Zambezi Exploration’s 61.

“The applicant will suffer irreparable harm or faces the risk of suffering irreparable harm if the first and second respondents [Alweendo and commissioner of petroleum affairs, Maggy Shino] proceed to enter into a petroleum agreement and issue a petroleum exploration license to the fourth respondent [Zambezi],” said Kalumbu.

Thus, he argues, an interdict will suffice.

Review

In the review application, Vena claims their application for a petroleum exploration license was submitted before any oil discoveries in the Orange basin.

He added that at the time of the application, block 2812A was open and was not subject to any other applications, which, he said, made Vena the first applicant.

Kalumbu added that Alweendo did not properly apply his mind when he rejected Vena’s application for a petroleum exploration license for half of block 2812A.

Consequently, Alweendo’s decision, taken on 15 June 2022 and confirmed on 30 June 2023, must be reviewed and set aside.

“The decision violates the applicant’s legitimate expectation to be treated in the same manner as other persons who have applied for multiple blocks and were awarded multiple blocks by the first respondent [Alweendo],” said Kalumbu.

Alweendo, alongside the ministry’s commissioner for petroleum affairs and the National Petroleum Corporation of Namibia, have noted their intention to oppose Vena’s application.

The matter will be in court today before judge Claudia Claasen for a status hearing.

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