President Netumbo Nandi-Ndaitwah has requested the attorney general to provide a legal opinion on the renewal of Paragon’s Oil & Gas’ petroleum exploration licence (PEL), as concerns persist over the circumstances surrounding the oil block extension.
The oil block resurfaced in the news last year as one of the reasons the president fired former industries, mines and energy minister Natangwe Ithete.
Insiders say the licence was renewed for four years, despite a two-year limit for a third renewal under petroleum regulations.
This may implicate petroleum commissioner Maggy Shino in the Paragon saga.
The licence came back into the limelight yesterday after businessman Knowledge Katti’s Sintana Energy announced that it paid N$16 million to negotiate for the right to purchase a stake in what is called PEL 37, an oil exploration licence in the Atlantic Ocean close to Walvis Bay.
State House confirmed that the matter is under review.
“The matter you are referring to forms part of ongoing internal processes within the government, which are being handled through the appropriate institutional and legal channels,” presidential spokesperson Jonas Mbambo told The Namibian yesterday.
Attorney general Festus Mbandeka has declined to comment.
“Matters that are subject of legal advice by this office are subject to attorney-client privilege.
In the circumstances, therefore, it would be inappropriate and unethical in terms of professional ethics to discuss any privileged communication,” he says.
The Namibian reached out to Desmond Amunyela, co-owner of Paragon Oil & Gas, for comment yesterday. When the reporter identified themselves, Amunyela ended the call.
At the heart of the latest review is the process of extending the licence and the number of years given to Paragon to explore for oil.
The opinion is set to look into the conduct of fired minister Ithete and Shino’s role.
She promised to respond to media questions today.
CONTEXT
Paragon has been trying to renew the licence for PEL 37 since 2021, when Tom Alweendo was minister of mines and energy.
Alweendo refused to renew the licence. The matter was allegedly escalated to former president Nangolo Mbumba, but Alweendo stuck to his guns.
Ithete was appointed as mines minister last March.
According to media reports, the president fired Ithete following his decision to renew PEL 37 during a time when there was a temporary ban of renewals and extensions of licenses, and when the president’s approval was required.
“I told the minister, ‘Let me first understand – there should be no renewal, there should be no oil block giving, unless we consult one another,” Nandi-Ndaitwah said last year during a closed door meeting with mines and energy ministry staff.
Despite this pact, Ithete approved Paragon’s licence in July 2025.
He was fired a few months later. While officials cited multiple reasons for his dismissal, sources say the Paragon decision may have been one of the triggers.
THE PROCESS
According to the 1991 Petroleum Act, exploration licences are granted for an initial period of four years, after which they can be renewed for an additional two years.
Section 30 (2) of the act states that (a) “an exploration licence shall not be renewed on more than two occasions.”
A third renewal is possible only if the minister of mines believes that it is in the country’s interest. But that third renewal cannot exceed two years, according to the Petroleum Act.
“Notwithstanding the provisions of paragraph (a), the minister may, if he or she deems it in the interest of the development of the petroleum resources of Namibia, determine that any exploration licence in any particular case may be renewed on a third occasion for such period, not exceeding two years, as may be determined by him or her,” the act reads.
Last October, Namibian Sun reported that Ithete was fired for renewing Paragon’s expired licence for PEL 37. They also reported that the president was unhappy with Shino.
Another article cited a 22 July 2025 memo addressed to Nandi-Ndaitwah, raising “a matter of serious regulatory concern” over the third renewal of PEL 37 granted to Paragon Oil & Gas Ltd.
The memo outlines how Paragon Oil & Gas, 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 27 March 2021, Tullow relinquished its interest and did not seek a third renewal,” the memo states.
“Paragon failed to respond within the stipulated timeframe, and the licence was lawfully cancelled.”
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