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.
Congrats to Dr. Jama Muse Jama. Hope u will win the award.
Well done, Jama Jama. I am happy for you and hope that you win it. Very proud of you.
Well done Dr. Jama and thank you SomalilandPress for bring this to our attention. I love this site honestly.
Iam so pleased to hear about your short list candidate of this award. I read some of your books, especially “A note of my teachers group” that is stimulating the young people of today to know more about their old generations like UFFO- young courageous university graduates determined to stand for justice, and how they work their people in a time where there is no freedom of expression. You have a great example to many of us who work hard to make a difference in their society. With hard work, devotion, and strong will, one can success an award like this and you are not exceptional.
You deserve that a ward. Dr. Jama Muse Jama
Way to go!
Farhan A Suleiman (Oday)
Hargeisa, Somaliland
Congratulations Dr. Jama, and thanks to SomalilandPress, the only site avoids to melt with the day-to-day unnecessary comments and articles that does not take Somaliland anywhere, except encourage and breeds tribal affiliation of society that needs to be shown where the interest of their country is and how they can achieve it. Well done fellow citizen, and rest assure that even the nomination to prestigious award is itself something important. Shortlisting itself is a recognition and adds more weight to your effort and the fight for freedom that we fought for it, and deserve to have forever. You will succeed Insha Allaahu Tacalaa
Sincerely Boqoljireh
As I like most of my time to read some Somali Studies weather in Somali or in English Language, Authors like Hassan Ali Madar, Jama Ali Jama were the first who pays my attention and after those Years I think it's fair enough to be awarded the Intel Freedom of Expression Award, I for one person think he deserves it but I also think that threre should more examples like him weather from the Media outlets or others.
I am happy that he got nominated but more importantly now more Somalilanders know Dr Jama Muse and his work for our people.
I really love Hargeisa Book Affair club and Dr is very smart man not just any one with "Dr" title.
This club is encouraging youngsters to read and to love books, this is the sort of man we need.
Also I hope all Somalilanders support Somaliland National Library it will go well with Hargeisa Book Affair.
Amazing isn’t it, the very people the Barre regime tried to silence in the early 80’s are publishing their memoirs and being shortlisted for prestigious awards, whilst people like Ali Samatar are facing charges in the US. Justice, however delayed, always comes to those who persevere.
Give me Dr. Jama Muse and Dr. Edna Adam anyday over Raage Oomaar. Wadaniyadu waa u dhalasho ee maaha afkaoon ka sheego Somalilander baan ahay you have to fight for it by all means necessary.
Great, it makes us both happy and proud that Dr. Jama Muse, a hardworker Somalilander, has been selected a candidate for the International Freedom of Expression Award. Well done Dr. Jama, Insha Allah you will win.
Dear Jama Musse Jama you were great and not only in the shortlist of ours as Somalilanders but win and rest deep in our hearts long time ago through your ceaseless effort of injecting the system with highly intellectual and constructive doses of enhancement and consensus building in a tirelessly manner. Sure we are aware of that and recognise it and thankful with delight.
All we have to say is…MAY ALLAH(SWT) BLESS YOU AND YOUR FAMILY AND JOIN YOU THE INHERITORS OF JANATUL FARDOUSE IN HERE AFTER, aaamin………NOTHING MORE PRECIOUS THAN THAT MY BROTHER JAMA.
by: Somaliland Independent progressive Think Tank
Congratulations Jama. From contributing to the mathematical models for stablizing the leaning tower of Pisa to being short listed for International Freedom Award — you certainly are a man of many talents. Congrats again.