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.
Welcome but you have to be careful that its regulated so its safe for our people to work. The Chinese are notorious for employee mistreatment, unsafe conditions.
They have ruined their environment soo much that their capital city is in an endless smog!
NLander……that is where the productions are. These are only assembly lines. Mistreatments? They will mistreat Somalilanders….??? They will be exposed in a very short time, and they have to regulate or shut down. Just watch.
This sounds too good to be true. why here where there is no water, not power generatoon, no skilled labourforce? If this project involves any upfront financial handout to the company in any form or shape, then it is almost certainly iffy.
Regretfully it sounds as if you are totally against it. But for your information, please be informed that they have deeply studied the country and its strategyical location, and the size of the market around SL (Ethiopia, Kenya, South Sudan, Djibout, Sudan, Yemen not to mention Uganda, Tanzania, Rwanda, Brundi, etc., with a combined population of approx 350 million is a major opportunitity for the Chinese.
2. If they fund some of the much needed projects in the nation, such as water, roads, electricity, hospitals, train the hundreds of young men etc., "call it what you want", in the ned it is ALLAH SENT, ALHAMDULILLAH WA NICMAT BILLAH.
Mashllah such an up lifting comment. We are Somali Landers not Bangladesh and no one can abuse us. I am pretty sure that our government considered carefully before going ahead with the projects as we want what can benefit us not what can harm us. I hope this project will be successful and will bring many developments to our country as well as providing jobs for our young men and women who graduated but struggling to secure a job. GOD BLESS SOMALILAND
There is no labour laws or laws for anything so pretty nice place for a factories.
Now with the horrible storries from Bangladesh about buildings collapse and workers trapped and poor work conditions and Foxcon
n's abuse of workers I guess Somaliland is the perfect spot to move some of the productions to. No-one to ask any questions and no-one who will ever care.
Money is the king!
Hamza-nor………..if you still have not understood the reason of their choice of SL, then you are passing through life with blinkers on. SL is too strategic to pass by, and the security is very good as well as being within the vicinity of very exciting markets.
you conot blame them for the problems in Banagladesh………it is one of the world' most corrupted country
its a fake news, if google for it you will find that this organization does NOT exist, and the only links you get are from somalilandpress, well done mr goth next time use the name of real organization!
BESMELLAH! Don’t you have anything else to do other than criticizing other people’s achievements? This nation is working so hard to build their own country and they don’t need to see ridiculous comments like yours. If you have Somali blood in you why are you writting such comments? or is your enmity is stronger than who you are?????. One day inshallah you will visit Somaliland cities and when you see people who look like you and talk your language then you will inshallah regret all this hatred and jealousy.
Asia dear, you are very young to understand what his name really STAND FOR. Then you will know that he is against anything because he is Bucur Bacayr. Ask mom and dad and they will tell you what it is. So do not waste time with him….let him shoot his mouth to get some satisfaction of his lackings.
HELLO MR BUCUR BACAYR….How many homes have you visited today to "collect" the traditional handout for the birth of a baby boy?
Please keep to your trade and let your peers handle matters for the country, which may also benefit
you and your people..
Beware of environmental impact. Remember the chinese tanning company that poisoned the drinking water near Hargeysa.
DO NOT BLAME THE CHINESE FOR THIS. BLAME THE RIYALE GOVERNMENT WHICH ALLOWED THE SETTING UP OF TANNING IN HARGEISA AND BURCO.
THE MERCURY MUST HAVE A VERY STRINGENT DISPOSAL, OR OTHERWISE IT WILL CONTAMINATE
THE WATER RESOURCES, WHERE TABLE WATER, STREEMS OR ANY OTHER SOURCE.
RIYALE'S GREED LEFT THE COUNTRY STAGNANT AND WITHOUT ANY PROGRESS, WHILE POCKETING MOST OF THE REVENUES AND/OR SELL IT OUT TO COMPANIES THAT COULD BENEFIT BUT DESTROY THE ENVIRONMENT.