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.
Shabab is disintegrating faster than a falling rock. Next, lets see if Godane can run to his Somaliland tribal land and see if they protect him. I'm sure permanent minister xirsi will welcome to the presidential palace.
Ahmeda
Indications are that Godane will be the next President of Zoomalia. Preparations to overthrow Hassan Culusow are under way. Believe it or not.
Faaliye,
In a bubbling 21st Century contemporary world of our generation, anything is possible.
I know that the Alshabab fighters are too many different wings. btw which side this Godane is
on? Is he the big dir,RJ'wayn Alshabab leader, or with the ASWJ or Whom?
Cheers.
If Taliban have been given a voice and a portion of political power… It will not be long before Shabab settle for a 50% Share of Somalia-Italia political power!
If it brings peace then it is an option to consider.
Without Shabab Somalia-Italia will return to the 1990ies clan wars over land and resources. Shabab can become instrumental in averting a return to WARLORDISM and the tug of war over food aid.
Kismanyo is a perfect example of things to come when there is no force strong enough to restrain the multitudes of self appointed presidents that will fight over limited resources.
These salafi extremist always end up turning on each other. Just look up what happened in Algeria back in the 90's when those extremist turned on each other.
This is not Salafi extremism this is what Islam is. I am no friend to these people but they follow the prophet and the sharia to the letter.
There is no cherry picking with these guys. I might despise them for the ideas they hold, but I do respect them because they dont lie to themselves about what Islam really is.
that is not islam bro…..ther is no extremism in islam
Actually there is! Just take a look at the hadith and tafseer. Perhaps you should look at another thread where I actually listed hadiths you can look up at your local islamic bookstore.
Here is a novel idea why dont you start with Sahih Bukhari and just read thru it all. It might take you a min but trust me after that you will wonder why no one mentions these facts to everyday muslims.
Once you get to see the religion deep down you see that these guys arnt really lying. The thing is somalis have gotten the watered down sufi stuff for soo long. Which I admit is better less violent however, according to the hadith and tafseer it becomes harder and harder to justify somethings which is probably why sufism came about bc people were like this stuff is just fing crazy.
But still it has the same roots and bad roots are bad roots
Careful here bro, other wise guys with balaclava and attack dogs might come to your home uninvited anywhere in the world kkkkkk. personally i find your interpretation of hadiths erroneous cus most of muslim scholars actually condemn these nut cases. Remember Islam is all about peace. Salaamu caleykum brother( peace be upon you).For your information, when it came to war and peace, our beloved prophet (scw) always chose peace. Such was his love for mankind that he used to spend all nights crying and making ducaa to Allah for the success of each and every human. In all his confrontations with qureysh in Hijaz, all in all around 700 more or less died all together(muslims and non-muslims). wa billaahi towfiiq.
I am Sufi muslim BTW are there any Sufis in here?