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.
"The villainy you teach me I will execute, and it shall go hard but I will better the instruction."
Shylock
In Somali is it not "Laga baray laga badi".
1.There is no Nation that surrendered it's RECOGNITION when Welcomed into the league of Nations by 35countries but Somaliland.
2. There is no National that has won back it's right to Sovereignty and independence without bloodshed nor should Somaliland expect to be the first.
3. Politics is the process of controlling the values of demanded action there is neither GOOD nor BAD suppliers.
Buuxiye bro, de jure Somaliland no surrendered it's recognition when welcomed into the league
of Nations by 35countries. As a matter of fact, a birthright post independece recognized by
35countries prior to becoming partnership union with the other similarly recognized Southern
entity should in no way be called surrendered. That's wrong terminology negating the whole
de jure status quo of Somaliland. de jure Somaliland before and after 1991 remains the legit
status quo. your 2 and 3 are okay though.
Cheers.
where are these 35 countries now? lol Pleaaaaase give us a break.
I see a Terrorists support rally we called on the US and AMISOM to send predator drones to Northern Somalia Al Qaeda has made its home there.
The Clan that provides the larges quantity of foot soldiers for the Shabab is non other then Siyad Barres Faqash Marehaan clan.
It you who is protecting the where abouts of your Amirs that have kept the expired food aid from 50-cents entering your Gedo region.
Thats nonsense the most of al shabab members are from your area Buuxiye and bay-bogol region we can not afford to die for faceless masked Wahhabis we are the current and future leaders of Somalia .
Check this link even the Chinese know that you guys are harbouring AL Qaeda http://www.hiiraan.com/news4/2013/Jan/27912/somal…
Criminals who were wanted in Somaliland and never will set foot in its soil again except of its jail cells, had become the leaders of the South and today these criminals who were wanted in Somaliland for their crime of terror all have found home in Gedo. The people of this region thinks these criminals will bring them back the old glory days of AF-Weyne.
These fugitives and all those who harbour them, their days are numbered.
The final nail in the coffin for the traitors that though IGAD could help them http://addisstandard.com/?p=1817
الله أكبر for the first time since the collapse of our beloved republic we have finally cut of the interfering hands of the Ethiopian and Kenyans.
Somaliland is here to stay. You can wish it away, you can stop it and you can harm it, all you guys do is trawling Somaliland websites. Go to Hargeysa, Burco, Borama, Ceerigaabo, Las Canood, Berbera, Sheekh, Saylac, Badhan, iyo Las Qorey, if you think you can do something about Somaliland. Otherwise, get a life and move on with your own wretched country.
or rather you can't wish it away, you can't stop it and you can't harm it. Come on have go if you are brave enough.