Namibian indigenous company Red Soil Energy and Mineral Exploration (Pvt) Ltd has taken the minister of mines and energy to court over his refusal to approve the company’s application for an oil exploration block off-shore Namibia.
On 6 October, 2020, Red Soil applied for an offshore petroleum exploration licence (PEL) over blocks 2512A, 2513A, 2513B and part of block 2612A after its managing director, Kaura Kaura, enquired about the blocks’ availability through the Office of the Petroleum Inspector at the Ministry of Mines and Energy.
After being told the blocks were available, Red Soil lodged its application for an exploration licence with the ministry.
On 1 February 2021, Kaura received a letter from the minister informing him his application had been unsuccessful due to failing to meet certain requirements.
Kaura took the case to court, but High Court judge Esi Schimming-Chase, who heard the case, ruled in favour of the minister on 18 August.
The basis of the minister’s opposition to the application is that Red Soil did not meet the requirements of the act and the published guidelines, and therefore did not submit a proper compliant application for consideration.
According to the minister, Red Soil’s application was among applications evaluated by the ministerial evaluation team on 18 November 2020, which recommended that the application be rejected as it failed to provide and demonstrate its technical and financial capability to carry out its operations.
Red Soil, however, believes it was unfairly treated by the minister as it was informed by one of the members of the evaluation team, Maggy Shino, that the blocks being applied for were reserved for the “politically connected”, and that other Namibian companies had been granted more opportunities to submit their financial guarantees.
This was denied by Shino.
In dismissing the case, Schimming-Chase found that the minister was not unreasonable to refuse the application.
The judge ordered that Red Soil’s application for a review of the minister’s decision is dismissed, that the applicant pays the costs of the application, and that the matter be removed from the court roll and be regarded as finalised.
Red Soil then appealed against this judgement.
In a notice of appeal to the Supreme Court filed by law firm Dr Weder, Kauta & Hoveka Inc. on 18 September, Red Soil cited the minister of mines and energy as the first respondent, the National Petroleum Corporation of Namibia as second respondent, and Indigenous Energy as third respondent.
Red Soil is appealing against the High Court’s order to dismiss its application, as well as an order to pay the cost of the application.
The company argues that its application was complete and ought to have been evaluated.
The High Court had accepted that the minister considered the recommendations of an inter-ministerial evaluation committee and deemed the application unsuccessful due to the applicant’s failure to demonstrate technical and financial capacity.
Red Soil argues in its appeal that the sole legislative instrument that governs what must be included in a PEL application is Section 32(1) of the act.
The relief Red Soil seeks is that the High Court should find that the minister’s decision was taken unlawfully, tainted by a lack of procedural fairness.
– email: matthew@namibian.com.na
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
