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.
Dear Readers, al jazira is just focusing on bad things in somaliland not because it cares about these poor refugees but to blame somaliland on everything even Palestine if it find a link in their single minded biased policy. Click on "send feedback" on their report page and let them hear ur feedbacks
If we good to our brothers and sisters who left their homes in Somalia, we don’t care what Aljazeera says about Somaliland. Somalis can’t be refugee in their home land and they have the rights to stay as long as they want.
All they have to do is not to cause any problems for us. If any Somaliland politician is blocking food that was going to displace, that politician should be dismissed. Somalilanders even sent food to Mogadisho.
I remember Amoud had sent some kinds of help to Mogadishu and all Somalilanders should help out our children who are in need. We should all know that regardless of political difference, we do care from one another. What Somaliland or Somalia gains is gain to all Somali population.
Ayanle you are one naive person
Somaliland is not Somalia and "Somalis" can be refugees in Somaliland they're two different country, the refugees from Somalia are welcome as long its acknowledged that this is Somaliland not Somalia
Another uninteresting topic from a mediocre walaweyn trying to promote his journalism skills.
Warfaayow wallaal amba waan jeclaa inuu warfiicani subaxa waabari ka yimaado wadankii. Waxyaalo badan oo la isku qaldayaa jira hasi ahaatee qofba si uu u fasirto. Calmadaha Somalia, Somalilanders, Somalis, iyo Somaliland midwalba micnogaara ayey leetahey.
Somalia waa wadankii burburey Somalilandna weyka mid aheyd. Imika Somaliland weyka baxsantahey oo taala iskumaheysto.
Somalis waa kalmad guud ahaanba ka dhexeysa guud ahaan somalida dhamaantood. Markaa marka Somalilanders iyaguna waa somalis. Dhaqanka iyo siyaadana inla iskuqaldo maaha. Siyaada waalagukalategey oo nina caadkama saarna dhaqankuse waa maguuraan. Dadkuna waa wada Seedi,Abti, wallaalo ama gacal-xidid.
Dowlada Somalilandna qofna qofkama xigo. Muwaadinkuna wuxuu xor u yahey inuu wallaalkii marada hadeyka beylahdo usheego iney maradu kabeylahsantahey taasi xumaan maaha, waa wax isku sheeg.
Ma ogid inaan iniguba noqon hogaamiyayaasha Somaliland ee mustaqbalka iyo inaad adiguba noqon ilaahbaa og. Cidkale waxkuma heysto aanka aheyn dowlada iyo macaaradka Somaliland. Marka laga reebo Faysal Cali oo isagu iila muuqda siyaasiga kaliya ee daacada ah intooda kale Maraduweyka beylahdey.
Allah ha unaxariisee hogaamiyeyaalkale ayey Somaliland soo martey uuka midahaa Cigaal. Meelbuu soo gaadhsiiyey hadana Riyale ayaa kumeelgaadh sharigu u siiyey dabadeedna ladoortey.
Sadexdii sano ee u danbeeyey ka hor Somaliland marokama beylahsaneyn. Su’aasha se meesha taalaayi waxa weeyi madowlada dowrnin oo budhcada oo cirka laga soo hindhisey danbiyadii aygeysteen ineywax kaqabato kariweysey maradu maka meylahsentahey.
Somaliland markii horeba beelo iskutagey oo nidaansameystey bey aheyd. Hadiise nidaamkii loo hoqaansamiwaayo oo danbiilaha sharciga la horkeeni waayo cadaaladana lagu dhaqmiwaayo, qofku maanu xaq ulaheyn inuu aayihiisa ka ficiro.
Aynle walaal maxaad boodhka isugu qarinaysaa maad aad yar u tidhaahdid(tiraahdid hadaad walaweyn tahay) I dont believe in somaliland somaliduna waa one country sida dadka qaarkiis, why do you have to go through hoops to drive home this expired idea of Somaliweyn iyo Somali waa isku dad. I got news for you brother man Somali isku dad maaha shaqana iskuma laha isku af xataa kuma hadlaan waxaana taa kuu cadaynaysa koonfur xamar ama boosaaso afka lagaga hadlo wuu ka duwanyahay kan laga isticmaalo waqooyi, baydhabo iyadu af kalay ku hadlaanba oo waa af maay maay mana aha af soomalia markaa xagaa inaga yara dhiga doodan jilicsan ee afka ku saabsan, waxaad kaloo ku doodaan Somali waa isku dad oo wey is xigaan taasina waa been waayo haday isku dad yihiin xamar iyo boosaaso maanta sida hargysa ayey ahaan lahaayeen waa hadiii dadku isku mid yahay, tan xididka aad sheegayso micno weyn ma samayso sababta oo ah tirada dadka kala guursada koonfur iyo somaliland ma badna oo waa dad yar oo tirsan marka loo eego tirada dadka reer somaliland ee iyagu kala guursada taas oo boqolkiiba gaadhysa 96% ugu yaraan. waxan ka socda somalia waxba
kama galin somaliland oo waa dal kale sida itoobiya ama jabuuti hadii uu dagaal ka dhaco waxba kama galin somaliland farahana inay la gasho internal conflict oo dad iyo dal kale ka dhaxaysa waa faduul loomana baahna, somalia arrimaheeda u gaarka ah waa mid jirta ninka u dhashay ee yaan somaliland lagu habsaamin inta ay somalia gubanayso
warfaayow: haku xiiqin, Aynle waa reer Borama. Wax baan u kale caddayn amase sidaasay iyagu u arkaan.