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.
Reer Burco Biriij sadexaad oo ay candhuufta ka tufaan ayay heleen. Waxaa la yidhi barigi Burco loo dhisay biriijki ugu horeeyay, dadkeedu intay istaagaan dhexdiisa ayay isku odhan jireen, Candhuuftayda ayaa kaa hor dheeraynaysa iyo tayda ayaa kaa hor dheeraynaysa.
Markaa mabruuk reer burco, mid sadexaadna heshe. Reer hargeisa wax aad ugu faantaana waad hesheen oo ah 3 biriij ayaanu leenay.
adeer burco iyo hargeysaba waa dhulkaygii laakiin hore ayaa loo yidhi tiisa daryeele ayaa tu kale ku dara markaan tayda dayac tiro ayaan hargeysana u soo jeesanayaa
Imikuun bay odhan maxay diyaaraduhu noo rushayn waayeen.
good job reer burco.
Buraowians are the best. They showed perseverance and deserve credit for their hard work. Hopefully more bridges will be built in the future to connect the city, where the GREAT Togdheer river divides. It will not be long before the hardworking people of Burao build great city parks and beautiful ponds in it, so that they can have picnic on it.wWth Allah's will, it'll happen soon.
Kudos to Dahabshiil and the hard working Burao people. This is their third bridge completed ontime while the Hargeisa bridge not too far from the presidency still sits idle for the 5th years, nothing in its place. Wahtever happened to the funds were collected for its reconstruction? Goes to show you that the government does nothign as good as the private sector leave it to the private companies.
Congratulations to all the people who took part in this project including Dahabshiil and the people of Burao, you are unified always in these sort of areas and this is why Burao will always be the traditional home of Somaliland.
heeeeeeey my city doin big…………..by da way dis is da fourth one…dey forgettin in the city….
Burco wax ay ka fiican tahay Hargiesa oo awood u wayday in ay dhisato biriij, ama ay hagaajiso kii daad ku ka qaaday
KIA.
I am not jealous
kafatanku uu furan yahay, shakina igagama jiro waxa qabadka ree Burco ay samaynayaan mudadii danbe. laakiin miyaanay kuu muuqan saaxiib in ree burco ay arrintoodu tahay taadana kula lihi taydana anaa iska leh. waayo cida maanta Hargeisa wax ku haysata ree Burco aad bay uga muuqdaan. Hargeisana maanta ma ah Hargeisa dii hore waa caasimaddii Dalka waana la wada leeyahay taladeeda oo waa loo simanyahay.markaa ninkii maanta gacantiisa qoyantahay ee wax haya waa inuu wax ka qabtaa. oo marka Biriij Dahabshiil ka dhiso Burco waa inuu ka labaad ka dhisaa Hargeisa ama magaalo kale waayo koleyba Hargeisa ayaa uu faa"iidadiisa ugu badan ka helaa iyo sidoo kale magaalooyinka kale. .
sxb musa…
marnaba dahabshiil ha dhaleceen ma ogiid wuxuu hargaysa iyo dalka oo dhan ka qabto sxb blame on da dawaladan beenta kugu sheekaynaysaa ee dhiigi dadka reer hargaysa cunaysa its shame that hargeisa is our capital hadan birish yar bay 5 sano dhisayeen…toos sxb dahabshiil hargeisa waaka koone kastaba dhisaye se mida kale reer hargaysaay hadii aydiin aheen jidh xun maxaa aad kaga dulmeralaysanaysaan burco oo aad marba hadalka yar ee jilicsan u soo turaysaan hadii aad wax taraysaan casimad iyo dawladii iyo tajiriintii dhaqalohoodiba idiinka ayaay dam idiinku yihiine maxaad idinku isugu cananan waydeen taas intaad meel walba nacnacdaas ka haysaan…intaad ku jirteen burco ayaa budh sida ta ayaa ladin dhafay anagana hadalkiinu waa noo bararujin iyo isku dubnidayda ayaad na xasuusinaysaan uun lakiin idiinka yaa idiin toosinaya talow?
Burco waataa is muujisee bal Hargaysa oo sida dulinka ku dul nool gobolada ay ugu muhiimsan yihiin Saaxil iyo Togdheer car biriishkaa ha dhamaystaan, haddaan labadaa gobol caawimo waydiisan
I cannot believe those so called Somalilanders are exchanging here such sick comments. I bet most of those here, who are talking as though they represent one of the regions or cities in Somaliland have never ever contributed anything to their country. Because a good citizen who contributes to the progress of his country, like Dahabshiil, would never talk nonsense like this.
People, just read back what you wrote and have some self-respect.
Musa, Somaliland is one, if you want division and whatever is that you trying to promote, give up your Somaliland citizenship and join the great destruction in the Somalia. If you are a grown up person, you should be ashamed of yourself, and if you are a kid, you definetely have no good role models. Check with Somaliland's larger community centres for the right inspirations.
Peace
Salma
ahahahah put ur feet on the ground firmly chick. All somalilanders are same, but it is good emphasize who is doing good, and who is not that is all. Of course Burco is way ahead than Hargeisa when it comes to reconstruction of their city.
waa runtaa ninka abdirisaq waxan lo jedinbuu ka hadlaya
dadkoo dhan buu xilka saran yahay dhisida dalka, whether u re from burco or hargaisa or any other plce so cool down and remember we re all from s/lnd and we don't need to say i'm dis and dis, especially these days coz our enemy is watching us in every second and every moment
I think it's time we call the burco boy to come and fix our Capital Hargaysa
Kadra: who is u enemy i did not like the why u talk we all somali dont divide us i am somali and am proud to be asomali where ever i go people nows me as a somali no body calling me somalilander unless i explaing to them so open u ear and be somali ok that will be good for u. Kadra me my self i born in Hargaysa and i can not call my self somalilander.
Harkaysaay iyo Burco waa isku mid hakala qaad qaadina plz ka fiirsada comment
Maasha Allah waa wax aad loogu farxo walee horumarka somaliland illaahay ha ugu sii wado dadna way is cunayaan dadna waxay ku jiraan siday wax u dhisan lahaayeen war reer soomaalilaanoow hadaan idiin imaado ma isoo dhawaynaysaan idinkama fogiye lol ViVa Somaliland wax kale ma ahan intaasi waa intaad naga aqoon badan tihiin waanu idiin qirnay.
Si fican ba uu hadashay Somalida waxa laga donaya inay dhaman tageeran wixi fican doesnt matter meshi lagu qabto ama laga hirgaliyo, wixi cunaa wa inaan dhaman iska fogaynoo ama cambareenayo.
Sido kaleen u rajenayaa Gedo iyo umada Somaliyeed.
dhalin yardaa horu marka iyo horu socodka umad somaliland ka soo hor jeeda ee horu markii umadeenu ku talabsataay leeh wax kor ku qoraan waynu garanaynaa ciiday ka soo baxaayan waxasi ee dhalin yarada reer hargaysoow hanan qaada sxb yaal berigii horee dhalinta reer muqdisho iyo reer jabuti aayaan hana qaadi jirinee magaladiinii hooyo hoos u eega oo ka gil giisha wuxuushta iyo madaawga saaran malaadiina burco baa tidhi baad illaa iyo taan iyo turkey gii iyo talayangii la soo tagnaydeenee sidaan si isugu dhaamam oo wadoooyinka gobolkiina dhista birshiyad hagajista hadii kale waad ku caasimaad la, dahiin ee taas maanka ku hayaa
manshalah burco waa gobol qabobo dhalin yaro iyo wayal intuba isgarab sadeno ifka ug jecal waxa qabado
kii quranka ka akhriyay baan ahaaba ee ducada soo mara