PETROLEUM EXPLORATION COMPANIES
The Government of the Republic of Namibia through the Petroleum (Exploration and Production) Act of 1991 empowered the Minister of Mines and Energy to conclude agreements with individual oil exploration companies who are granted oil exploration licenses in Namibia to contribute an agreed amount of money to the PETROFUND. Thus, the Petrofund draws its funds from petroleum exploration license holders. Clause 22 of the Petroleum Agreement has the key provisions for employment of Training of Namibians.
Employment and Training
22.3 (a) During each year of the Exploration Licence or any renewal thereof, the Company shall spend a sum which is not less than a sum equal to (agreed amount) United States Dollars for the purpose of the training and education of Namibians.
(b) Of the said sum, 70 per cent shall be paid on the date of signature and thereafter on each anniversary of such date into the Petroleum Training and Education Fund.
(c) Of the said sum, 30 per cent shall be expended by the Company on attachments and in-house training of Namibian citizens in the field of natural science, engineering, technology, accounting, economics and law as related to oil and gas exploration and production to expose them to petroleum industry practice and operations.
22.4 The sum referred to in clause 22.3 shall be adjusted annually by dividing such sum by the Inflation Factor.
22.5 If the Price Index ceases to be published the Price Index contemplated in clause.
22.6 Shall for the purposes of this Agreement be such price index as may be determined by mutual agreement between the parties to this Agreement.
