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.
These so called Somaliland Parliamentarians who came here a decade ago, but instead lucky to have their term extended by the President, with a string linked that, he would also get a kind treatment from them when he is also help, which is a planned tit for tat tactic.They had never visited or turned back to their respective regions, where they have been elected from. Although, they are well paid, they are typical scroungers and completely a national scourge to have them. I would have liked to see them go once and for all, as soon as the next election comes into force in the near future.
Too lazy, too long and too complacent. This parliament needs to be culled at the next election as soon as possible. We must protect our institutions and make sure they remain on firm standing. I am afraid what is happening in Somaliland is what we saw in the defunct Somali Republic, all roads lead to the capital. We need to strengthen the regions and the local councils, because these current MP appear to have forgotten the areas they represent.
It takes time and money to build a nation. If you only get X amount of dollars and you have a choice to build roads to the largest hubs or tiny villages in the bu tt crack of nowhere which would you choose?
The difference with siyad was that he had access to large amounts of money and he on purpose made sure no one else got anything for many years.
Somaliland doesnt have access to markets like Somalia had and does, so every penny we get has to be used wisely. If we are going to build roads then we need to connect hargeisa with berbera, borama, Zeila etc focus on the large then work our way out.
If everyone screams for their little village with a population of 2k and half of that is either camel or tumble weed then we're truly f r ack ed!.
What is wrong with Somaliland diaspora folk. Somaliland parliament is exactly a part of the big system. Both the presidency and his ministers are corrupt up to their teeth. I was about to laugh loudly when the Writter was praising the current senile Somaliland president, ahmed mohamed siligno. He should have retired long time ago. We have to understand that Somaliland parliament is a part and parcel of our society, to speak truth, we are corrupt, tribalist and narrow minded who always talk in terms of clan. Go to any part of the country we live in segregated area. Even our folk in diaspora always talk in mafrish about clan. As long as we grow out of this hypocrac we will continue to be marred by in-fight and conflict. Let us decentralised Somaliland and send power to local area. Somaliland should be divided into small regional federal states. Big towns, such as berbera, Burao and hargeissa as self administration city. Somaliland need a political reform. A new way of doing things. That require a new type of leaders. In my opinion, it is only then we can get out the situation we are now in. Looking at the current political leaders in Somaliland, there is only one person that could meet this criteria. It Jamal Ali, the ex-banker. However, Somaliland people has no gut of understand the benefit this man could bring.
,
what a stupid article. Everyone is bad except the president. How much many has the Kulmyie party pay you for this article. Your not fooling anyone.
Dacaayadda dad u dhashay Somaliland ay ku hayaan dawladda Somaliland waxay waxyeelo iyo sumcad xumo ay ku tahay jiritaanka iyo horumarka Somaliland.Hadalada iyo ficilada ka soo baxaaya dalka malaha waa dhalanteed. Ma waxay Dadkaasi garan la’yihiin in ay taageraan oo ceebta ka ilaaliyaan madaxdooda iyo dalkooda, madaxtu xushmad iyoin la ixtiraamo ayey ka mudan yihiin. Wixii lagu dhaliilaayo iyo qaldaad ka jirana waa in si asluub leh loo xallilaa oo lagu dhammeeyaa wada tashad.
Waxa dhawaan la mamnuucay Tvga Universal in uu wax ka soo tebiyo Somaliland kaddib markii laga soo daayey dacaayad ku saabsan madaxweynaha Somaliland. Waxa la filaaya in guud ahaan si buuxda loo taageero go’aankii wasiirka warfaafintu Universal kaga joogiyey hawlihii uu ka hayey Somaliland. Hase-ahaatee may noqon waxaana fursad helay kuwii awalba ay siyaasaddu ka qaloocsaneed.
Universal oo sii wada dacaayaddii ayaa wuxuu adeegsday dad aad looga yaqaan somaliland. Kuwa samaacadda oo horfadhiistay Waxa ka mid ahaa Faisal Cali Waraabe oo la ogyahay inuu ka rajao beelay in uu madax ka noqdo Somaliland. Faisal wuxuu ku tilmaamay dacaayaddii laga sameeyey madaxweynaha majaajilo iyo madadaalo (entertainment). Waxa kala oo ka mid ah Ina buubaa, nin dhalinyaro ah oo ku jira wakillada oo hanjabaad iyo digniin la yimid, awooddaas oo aan la garaneen meel uu ka keenay. Waxa kale oo Universal uu adeegsaday Jamal Cali Hussein iyo Ali Guray oo isaga si toos ah loogu casuumay xarunta TVga Universal. Raggani waxay si toos ah u raaceen cadowga dacaayadda ku haya Somaliland.
Raggan ka soo horjeeda dawladda ee la saaxiibay Universal miyaysan ogeyn in ummaddu caqli ay leedahay oo ay taageersan yihiin madaxweynahooda iyo wasiiradiisa. Miyaysan arag sida madaxweynaha loogu soo dhaweeyey Hargeisa. Ma waxa ay la noqotay in ummaddu ku taageersan tahay ficiladan qaldan iyo mucaaridnimadan qaawan.
Waxa kale oo la yaab ah aqoonyahankan dhawaan ku soo biiray siyaasadda Somaliland ee ka aradan habka loo hantiyo maskaxda iyo quluubta dadka uu ka doonaayo in uu ka helo cod. Waxa dhawaan isaga oo jooga Djibouti uu ammaan u jeediyey Djibouti iyo Kilinka Shanaad ee Ethiopia isaga oo sheegay in Somaliland gaajo iyo macaluul loogu bakhtiyaayo. Waxa uu hadda madaxweynaha iyo dawladdiisu uu ku dacaayadeeyey dhalinyaradii, ardaydii dugsiyada iyo dadweynihii u soo baxay madaxweynaha markii uu ku soo laabtay Somaliland. Jamaalow aqoonta aad leedahay caqli ha kuu yeesho.
War miyaadan ogayn in madaxdeeno ixtraamka iyo xishmada ay mudan yihiin hadii ay shaqaystaan. Hadaanay mudnayna loo sheegayo runta. Waxaan ku weydiiyay habeen hore marka uu telefishanka qaranka uu kasoo daynayay raga caayay Ciro ee lahaa barlamankiibuu baabiinaya taasi qalad mayaanay ahayn. Inuu telefishanka keeno niman iyaguna taageer Ciro inuu keeno miyaanu ahayn. Shalay miyaanay ahayn markuu Siilaanyo ka cabanaayay telfishankii qaranka ayaa naloo diiday.
Marka madaxweynuhu dadka ku yidhaahdo uf uf dadku markaas mayaanay u arkayn qof bilaa ixtraam ah. Ixtraamka waa la kasbadaaye ha kasbado.