Supreme Court sinks Red Soil’s oil licence challenge

A company that challenged the refusal of a petroleum exploration licence in Namibia has lost its case in the Supreme Court, which has upheld the mines and energy minister’s decision to reject its application for offshore oil blocks. Red Soil Energy and Mineral Exploration applied for an exploration licence over several offshore blocks in southern Namibia, but the then minister of mines and energy rejected its application on the basis that the company did not demonstrate technical and financial capacity required under the Petroleum (Exploration and Production) Act. The company challenged the decision in the High Court in 2021, arguing that the minister acted unfairly, irrationally and outside his powers.

It also claimed it was treated differently from other applicants and alleged that the blocks were reserved for politically connected individuals. The High Court dismissed the company’s review application in 2023, finding that Red Soil had failed to submit a complete application, including audited financial statements and a detailed work programme, to the mines and energy ministry. Judge Esi Schimming-Chase said the conduct showed “a lackadaisical approach” to the application process.