A strong legal framework for midstream infrastructure is essential to ensure that Namibia maximizes economic benefits, attracts investment, and builds a sustainable energy industry
SANDTON, South Africa, June 20, 2025/APO Group/ --
By Rachel Mushabati, Senior Associate Attorney & Country Head – CLG Namibia (www.CLGGlobal.com)
From Discovery to Delivery: Building a Legal Framework for Namibia’s Midstream Infrastructure (by Rachel Mushabati)
Namibia’s recent offshore oil discoveries mark a pivotal moment in the country’s energy sector. With major players such as Shell, TotalEnergies, QatarEnergy, and Galp uncovering significant reserves, Namibia is poised to become a key oil producer. However, while exploration and production activities have gained momentum, the midstream sector; involving transportation, storage, and refining of petroleum, remains underdeveloped.
A strong legal framework for midstream infrastructure is essential to ensure that Namibia maximizes economic benefits, attracts investment, and builds a sustainable energy industry. CLG Legal and Business Advisory, with its extensive advisory experience across Africa, is uniquely positioned to support this transition. CLG has advised on midstream regulatory frameworks, infrastructure structuring, and investment promotion strategies in various jurisdictions, and brings this expertise to the Namibian context.
Understanding Midstream Infrastructure and Its Importance
Midstream infrastructure serves as the critical link between oil extraction and the end consumer. This includes pipelines, refineries, storage facilities, and specialized port infrastructure that facilitate the transportation of crude oil and natural gas. Without adequate midstream infrastructure, Namibia risks becoming an exporter of raw crude without capturing additional value through processing and distribution. A robust midstream sector can boost job creation, industrial development, and energy security, making it a strategic national priority.
Market studies from other African producers have shown that well-developed midstream infrastructure can contribute up to 30% more in local value addition compared to direct crude exports.[1] In Ghana, for instance, domestic refining and pipeline infrastructure contributed significantly to its GDP growth in the petroleum sector between 2016–2022. Namibia has the opportunity to tap into similar economic potential.[2]
Existing Legal Framework and Gaps
Namibia’s petroleum sector is primarily governed by the Petroleum (Exploration and Production) Act 2 of 1991 and the Petroleum Products and Energy Act 13 of 1990. These laws focus largely on upstream activities and the regulation of downstream petroleum products. However, there is no dedicated midstream regulatory framework. The absence of clear midstream regulations means there is little guidance on ownership structures, investment incentives, and operational guidelines for pipelines, storage, and refining facilities.
For example, Nigeria’s midstream sector prior to the Petroleum Industry Act (2021) faced significant bottlenecks due to the absence of a clear regulatory framework, particularly regarding third-party access and tariff setting for pipeline infrastructure. These issues led to investor reluctance and underinvestment, which were only addressed after the establishment of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (Nigeria Petroleum Industry Act, 2021).
Lessons from Other Oil-Producing Countries
Namibia can draw inspiration from countries that have successfully developed midstream infrastructure through effective regulation. Norway, for example, has established a robust midstream legal framework that ensures state participation in pipelines and refineries while promoting private investment.[3] Ghana has a dedicated Petroleum Midstream Regulatory Authority that oversees infrastructure development and ensures compliance with environmental and safety standards. Similarly, Nigeria’s Petroleum Industry Act (2021) introduced the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which provides clear guidelines on pipeline ownership and operations.
The Role of Key Stakeholders in Strengthening Namibia’s Legal Framework
To unlock the full potential of the midstream sector, coordinated action is required among various stakeholders:
- Government Ministries and Regulators: Responsible for drafting legislation, setting environmental and safety standards, and issuing licenses.
- Private Sector and Investors: Bring in capital and technical expertise, while also needing legal certainty to invest confidently.
- State-Owned Entities: Can serve as infrastructure operators and strategic partners in public-private partnerships.
- Civil Society and Communities: Essential for ensuring environmental accountability and social license to operate.
- Legal Advisory Firms: Provide technical assistance in drafting laws, structuring transactions, and navigating policy reform.
Strengthening Namibia’s Midstream Legal Framework
To address the existing gaps, Namibia must develop a comprehensive legal framework that clearly defines the governance of midstream activities. A dedicated Midstream Act would be a crucial first step, providing legal certainty on pipeline infrastructure, refineries, storage, and transportation. Encouraging public-private partnerships can drive midstream development while ensuring local participation. Establishing an independent regulatory authority will help enhance transparency, streamline approvals, and enforce compliance.
Additionally, Namibia should implement policies that prioritize local employment and skills transfer, ensuring that midstream investors contribute to national workforce development. Environmental and safety standards must also be strengthened to mitigate risks associated with pipeline integrity, spill prevention, and emergency response. To further attract investors, tax breaks, duty exemptions, and streamlined licensing processes should be introduced to make Namibia a more competitive destination for midstream infrastructure development.
Conclusion
For Namibia to fully capitalize on its oil discoveries, it must establish a strong midstream legal framework that facilitates the efficient transportation, storage, and processing of petroleum resources. Without this, the country risks losing significant economic value and remaining dependent on crude exports.
By adopting best practices from other oil-producing nations and implementing strategic legal reforms, Namibia can create a thriving midstream sector that benefits both investors and citizens alike. CLG stands ready to support this transformation, leveraging its pan-African expertise in midstream regulation, infrastructure development, and legal advisory. Our team has been instrumental in shaping midstream legal regimes across West and Central Africa, and we are committed to helping Namibia build a regulatory foundation that supports sustainable growth and long-term prosperity.
[1] Ruben, R., Kuijpers, R., & Dijkxhoorn, Y. (2022). Mobilizing the Midstream for Supporting Smallholder Intensification. Land, 11(12), 2319. https://apo-opa.co/4ngI2bu
[2] Oxford Business Group. “Ghana's energy production targets and exploration attract investment”. Retrieved from https://apo-opa.co/4kUZQHu.
[3] Norwegian Petroleum Directorate (2021). 'Midstream Regulatory Framework and Investment Guidelines'.
Distributed by APO Group on behalf of CLG.
The coalition government of Kenya is not working, both parties are too corrupt to lead, the government should be dissolved and new election held soon for the better of it's citizen.
what this report doesn't tell you is that the maize scandal was executed from the prime ministers office.A PricewaterhouseCoopers report indicated that the Prime ministers chief of staff and personal assistant were directly involved in the scandal that cost 6 billion Kenya shillings.The president had earlier suspended the two and calls for the prime minister to take political responsibility were growing.The prime minister instead targetted the Agriculture Minister one of his former allies in the disputed 2007 election but recently turned foe asking him to take political responsibility for the scandal.The Agriculture minister instead sighted the PWC report with Kibaki revoking the suspension.Many in Kenya view the current crisis as an attempt by Raila odinga to create political drama to hide his involvement in grand corruption
Timeline of Events
A.d 2010 february 9th:
Odinga lecturers professor ongeri (minister of education-PNU)and professor karega mutahi,(permanent secretary education) telling them that investigations start by suspecting everyone (in other words, guilty before innocent). He tells them to step aside to allow investigations and says that were it his own brother, he would do the same.
A.d 2010 february 10th:
PNU elements in Kenyan intelligence leaks a report that implicates railas p.a and p.s were involved in stealing from the kenya public kshs 6billion through inflated maize prices. The report from the pwc specifically mentions railas p.a caroli omondi
A.d 2010: february 11th
Odinga says he has not studied the pwc report and that he needs time to study it. The truth of the matter is, the report arrived at his desk in december 2009 and he knew all about the corrupt deals taking place in his office from as far back as 2008.
A.d 2010: february 11th
Another report from the parliamentary committee on agriculture chaired by john mututho says that raila chaired the adhoc committee that gave a go-ahead to afrigil pty to steal maize from kenyans. Afrigil was not among the 123 companies that submitted a tender neither was it among the 5 shortlisted ones.
A.d 2010 february 12th
Odinga says that “we should not sacrifice the innocent“ and we should wait for investigations to go the full course. In other words innocent till proven guilty. However, when it is apparent that he is directly involved in the maize scam, he tells his p.a caroli and p.s to step aside.
A.d 2010 february 14th
In a bid to keep the scrutiny of his nefarious theiveing ways from the public, he “consults with kibaki”- just that the kenyan public have never known that james orengo and otieno kajwang were also called kibaki. James orengo kibaki and so on.. After consulting “kibaki” he ostensibly is guided to suspend ongeri and ruto. When asked by the media whether he consulted kibaki, he says yes.
A.d 2010 february 14th
The other kibaki ie mwai kibaki, reverses the decision of suspending Ongeri and ruto because odinga has no powers to do so. However it is quite clear that odinga was involved in maize theft. He told others to resign, yet he couldnt take his own medicine as the biggest culprit. 2 reports from pwc and psc mention him directly as the beneficiary of inflated maize prices. In an interview with bbc, he says that he doesnt need to consult kibaki. But wait,..i thought he said he consulted kibaki? well….he did, but not the kibaki you thought. He meant that he consulted james orengo kibaki..
A.d 2010 February 15th
Odm declares a national accord crisis and call for Kofi Annan to return.Creating a new scandal Aimed at covering up the Maize scandal and the Prime Ministers involvement …..
A.d 2010 February 16th
ODM Writes to the CoE disowning the parliamentary select committee draft constitution(further creating new drama)
.. Anyway, long story. Raila Odinga was the architect of the Maize Scandal everything else is just high political drama to hide that fact