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.
Yeah it is all the FCO's fault. Not the fact we colluded or ignored and now (justfiably) fear the salafism that is taking over our country. Everyone who encouarged or allowed the wearing of hijab, the acceptance of gender-separation weddings, the banning of alcohol, the banning of music and arts and dance- anyone who used the sinister words like qulwah and minqar and niqar – is either a Salafist or an apologist and colluder with Salafism.
Where you have salafism violence follows. First against 'Kuffar' and then against everybody who disagrees with them. You cannot say we reject Al-Shabab but welcome Salafism. It is the donkey and his two jaws.
It all started to go wrong when we put relgious verse on our ridiocolous flag. Why? Yaa inagu haystay islaannimadan aynnu afka la kala waaxeynno?
The ban is fully justified. We should stop whining and accept responsibility for own actions.
You have clearly been brain washed, and have abandoned you religion because of fear and your whimpish desires. But you should really fear Allah subhan wataala and the punishment of the grave and hell, have good time being naked there and listening to music and art, congregations.
Lizzie Lovett should not cover her hair. Our girsl never used till salfism came along. Dont suck up to it.
Fatso, It has nothing to do with Salfism. It is a word of Allah. Learn religion before accusations.
This idiot think one should change his/her believe in order to be except it. that is not what somaliland stands for…somaliland is muslim country who begging no one in order to exist. since somaliland is a muslim the we must respect our great religion. if britain don't wanna come to somaliland cos of our believes then so be it.
Bros and Sis
Why are you insulting me? Surely it is much better to try and correct me if you think I am misguided instead of throwing accusations like I abandoed my religion(Istaqfurulalh).
Bro Fair game Allah (SWT) has no interest in women's dresses. I say you are insulting Alalh (SWT) by claiming he cares what some girl wears. Obsession with covering up females is entirely cultural and it is not our culture. t is Saudi and afghani and Pashtuni. Did you loving Grandmother wear niqar? Did you your great grandmother? Did your great great great gran? Bro they wouldnt have heard of the stuff let alone wear them. And yet they were devout, pious Muslims.
So I argue you and ismahan are the ones brainwashed here. You are abandoning our culture and our beautiful Islam for other people's culture. Shame on you. Where is your pride?
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