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.
I thought Taleex was part of Somaliland or part of the so called colonial border, how come Somaliland SNM Militia did not come to help Khaatumo lol Its not funny that innocent civilians might have been killed but people need tolearn to talk peace and solve problems and differencies in a peaceful way,
Why come in and help khatumo out of all people lol they're just going to turn on us tomorrow.. I gotta an idea why doesn't the fgs in Mogadishu come help looooool what a joke
sheegato, leave hawiye out of your darood infighting
I believe somaliland should help the people of taleex. I also believe somaliland government knows puntland's action and is in agreement.
This photo, are they the Khaatumoist or the Puntlandoist? The Somaliland Garison in the area
should pick those Warsanjeli toughest soldiers to teach both the Koist /Puoist a good lesson
that they would never forget. Okay.
Cheers.
These people have no brains if they wanted to live in peace with their neighbors they could take a chapter from the Gadabiirse and Warsangeli everyone in Somaliland that wants to thrive is thriving all they fa qa sh care about is tribal bs. That is the reason their areas arnt developed bc they dont want to work with people and are trapped in the siyad era mindset. This is exactly why Haglatosie or whatever his name is left their camp. He knew they dont have any solutions for the population.
They remind me of the republican party in the United States all they do is scream about Obama etc but have no real solutions to go forward.
sadly the darood family have been brainwashed by siyads leadership, siyad got them to believe that he was the next prophet and that darood were chosen people.
The sad reality is far from that, darood family is just another minority in a land lead by issaq and hawiye
certainly the greatest obstacle to peace in khaatumo state are the Ethiopian cockroaches stooge SNM who are executing the strategic plan of Ethiopian to divide Somalia.
Puntland should respect the choices of Khaatumo people and Khaatumo state should work with Puntland for peace and unity for their beloved country Somalia.
Hey buqland we will divide walowayn into pieces once Somliland ictiraaf cames kkk.
u got that right khdar ….. by the way geezer the new report of un came out and there is no surprise Somalia is one of the most courpted countries so hell yeah we wont to divide and separate from this cancer called Somalia will rather to join Djibouti or Ethiopia than that so called Somalia your joke parlman is bea & moshtree
There is no something called Khatuma . it is just a joke.
The place is part of Somaliland. Do not forget that Somaliland is strong nation. It has very powerful army
Crockroach is not Ethiopia. Ethiopia is our strongst ally and regional superpower.
The crockroach is one who called himself Darood one time as member of the Puntaland, and again fight
when they did not pay him. Somaliland is majority with DIR tribes: Isaaq, Samroon and Issa.
Answer to Dahir Hawiye from Issa DIR man from Dirir-Dawe.
Dahir be proud that you are Hawiye cousine of Dir. Today thanks to God, that there is three free countries of IRIR SAMAALE. Jabuuti, Somaliland and Somalia. Somaliland is yours because your cousins Isaaq,
Gadabuursi and Issa are majority. Daroods are manority.