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.
Well when the USA and the Western world attempts to dress up yet another hapless NGO thief as a Legitimate President when it was broad day light theft with which he ascended to the head of State. Hassan Mahamoud bought 190votes out of a total of 271 on the night he was SELECTED by former warlords, Diaspora community and former cells of Union of Islamic courts(aka Shabab). The Damu Jadiid group to which Mr Hassan Mahamoud belongs has a non aggression pact with Shabab or else how did a man that never left the country in the 22years of conflict managed to survive let alone get rich siphoning food aid intended for orphans???
Shiek Sharif had his dialogue and agreements with Shabab and so does Hassan Mahamoud. Damu Jadiid[New blood] is merely the diplomatic wing of Shabab and the world is supposed to believe shabab's actions are independent. Shabab is the reminder to the international community that there is still trouble in paradise muuqdishu.
1. Hassan Mahamoud's government is NOT reaching out to create an all inclusive politically representative environment. In fact he is deliberately alienating the Majority within his country(Somalia-Italia). From puntland, Galmudug, Hiraan, Banaadir to Jubaland he is polarizing this poor nation that represents the Road-Map signatories he is neglecting the same constitution that SELECTED him into office as head of Somalia-Italia.
2. Hassan Mahamoud has totally neglected the action points of the London conference of 2012. The international community some 54-countries made a solemn promise to support and finance "any dialogue between Somaliland & the TFG/or who ever replaces them so that the two countries can reach a decision on their future working relationship. Hassan Mahamoud's government has taken it upon themselves to believe they can side step this solemn promise from 54-countries. Hassan Mahamoud assumes since USA has given his road-Map government recognition that this recognition is permanent and cannot be withdrawn or even transferred to a more appropriate government chosen y it's people.
3. Hassan Mahmoud has 1.5million people in and around muuqdishu that totally depend on Food aid to remain alive. He is far from a position to address the large numbers of his population that are in Yemen, Dadaab and Dollo Ado to name a few.
4. Hassan wishes to side step the same constitution that ascended him to head of state via a SELECTION process. 75% of the Road-Map signatories have been sidelined and Hassan intends to further alienate them for the political arena. Puntland, Galmudug and ASWJ makeup 75% of the Road-map signatories and they have lost all faith in this Road-Map that they designed since hassan ignores the Road-Map constitution altogether.
Is this what the USA was recognizing? They have created a Frankenstein President and for what purpose???
– It is not him uprooting Shabab no that privilege belongs to Amisom he merely takes credit inappropriately. Mission costing $650Million/year.
– It is not him Stopping Piracy for that privilege belongs to the various international naval vessels in the region in a mission costing $6Billion/year.
– It is not him housing , feeding and caring for 1.5milion idps in Muuqdishu let alone the 1.27million refigees in Dadaab, dollo Ado, yemen, Somaliland, Djibouti to name a few neighboring countries hosting the bulk of Hassan Mahamoud's population.
What did the USA Recognize then since there i no fixed population, no territorial control, no visible restriction of Kenyan and Ethiopian violations of borders as such no sovereignty to speak of???
The Recognition was of a Man like upon the the Naked King… Who awaits a brave child to remind the world that this make believe KING is truly NUDE…
Hassan you are Nude and May Shabab be that child that proves your nudity in Leadership as much as you have in in personality.
Folks..under the Alshabab pictures there is a grey moustached guy who carries *ever been arrested*
can anybody tell us what he is upto? Pretty scary formidable guy? Where is Kayse and his cohorts?
Cheers.
hahahahaha Which one are u talking about? the xine-headed dude next to the guy with the glasses… I think they're all scary, whoever took this photo was in great danger….
All scary eh! I wonder how civilians feel when they are under the rule of these men.
look at their faces acting all religious when they're actually paedophiles… LOOL
I think this new Somalia president is alright, anyone that has dhadhood protesting is good for all other Somali clans period. Can I get an Amen!
shabaab is unacceptable und ha to be iliminated, this strict way of practice the sharia right is only an pretext
to torture the poor people of somalia. they take children for suicide attacks, disgusting !! What has this to do
with Koran ??? Nothing !!There are animals !! No one will them.The US, AU , AMISOM have to stand and fight
together to kick them out of the country.Freedom for everybody this war terror-war must end !
shabaabis an barbarique terror group and it is really time to get them out of the country to bring the people peace and bread.there are as weak than never to be defeedet.The people must stay together with the government and the AU and AMISOM. It is a shame for the islam and so far from the holy Koran what those
Terrorists do since years and years!!Why Godane bring into Somalia as much foreign fighters ?? There have
nothing to do in Somalia that is why Aweyes has left the group..Where is Godane Where is Ali Dheere ???
Hiding under the civilians??