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.
http://www.hiiraan.com/news/2013/Feb/wararka_maan… http://raadreeb.com/2013/02/02/wasiirka-arimaha-gudaha-somaliland-oo-sheegay-in-al-shabaab-isku-aruursanayaan-bariga-gobolka-sanaag/ someone is lying
http://raadreeb.com/2013/02/02/wasiirka-arimaha-g…
or is it a clever move from the secessionist to put down the Khatumo rebellion ? kill 2 birds with one stone very clever indeed if true
samale,kk infact is the other way round, s/land region is in more trouble. this time no choice for them. khaatumo here to stay no matter what.
All the hate mongers towards our foreign minister have failed, and will fail more, after the latest british unsubstantiated warning to their citizens, because there is nothing true about it, but a wicked intension that our people and those of us who are UK citizen, will not forget, and will fight back in the next elections.
Dr.Mohamed Abdillahi Omar is a serious diplomat, who does his job honestly and skilfully, without listening to those of us, who unfortunately do not understand how things go in this complex world. He will succeed, and bring our country at shores of New York.
The British government declared that they do not recognize Somaliland (sic.) or any aother region of Somalia as a country as recently as this week. Yet again, we are talking about the Garadagland's Extraordinary Ambassador to U.K. here. Go figure!
By the way, which one of the two gentlemen shown in the picture is the fake ambassador?
Shut it Burger-king
the tall guy looks like ina cali family friend but to answer your question is the short guy.
Sexual frustration Sahra is it not? do you really like tall ones?
no jibril. you see how nice I answer back to you.
That is fantastic Sahra! That is a good reply for someone who does not otherwise deserve one.
Very nationalistic article and very timely. Somalilanders need to show that they are united for their country
Amazing, !! we cant pray in our mosquesin Hargaysa peacefully because Walwayn beggers swarming people like flies, and yet they are bad mouthing Somaliland.. Please take these gypsies from Somaliland, then say whatever you want.
Your mentioning gods home and prayer while you badmouthing those who are in difficult position and in need of assistance and it doesn't matter where they're from. I guess you don't know the place you going and the message behind. no wonder the so-called Muslim countries are in trouble all around the world. because we're in the time god said they might look like they doing everything the way it suppose to be but the last place they would end up is heaven.
why do people deceive others? Mohamed Abdillahi Omar is a crook and a liar for deceiving my people (Issaq) for 21 years, he does nothing but lie. Everybody knows the white trash village won't be recognized so why lie Mr Mohamed Abdillahi Omar?
Stop calling yourself Isaaq, unless you are an illegitimate son of Osman Kaluun from a Darood women.
My wife is Isaaq.
So you finally admit your illegitimacy?
It is not must do thing to be a member of UN. Switzerland is not a member of UN and it is functioning and prosperous country. What our Foreign minister should do is to defend the image of our country. It is very simple.. Somaliland has many friends so let us not worry what one country says about us at one particular time. Secondly, Any one who is old enough should remember that our foes-Somalia was more stronger, more united, more hopefull than 1993 . They had Politicaly motivated Boutros Boutros Qali, UN secratary on their side , In 1993, Addis Abbaba Confrence, Qhali tried agressively to bring us into their fold, but he failed badly and undoubtedly any one who takes the same course will fail again. Despite our leader's triumph of mainting peace and order, Somaliland survival depends on 2 things: The army and the economy.. And both are doing relatively well.. Its doesnt matter if we have bad leader or good leader. Leaders come and go. As long there is growing economy and well fed army Somaliland will exist.
For the time being, no worries for DR Omar. The man has been long enough on the job now since
July 2010 and should have gained real confidence by the day to deal with the Diplomatic World of Nations. Besides, the Polices and Politics of his Govt is always consultative for all the country's affairs on the National and International levels.
Cheers.
Mr Omar is doing very well and we stand shoulder to shoulder with him and I would like to advice Somaliland Press webmasters to filter option content as freedom expression comes with responsibility.
No one in the world wanna listen to this poor guy.The United Kingdom Prime Minister and Somalia President will discuss the future of fake land in the coming days in London and that is the end of the road.Dead end—————-No turns on red.
Ingiriis Cadoow adaanu kuhoos joognaa maxaa kadambeeyey?waa wax lafilayey Somaliland sheekadeedu mar uun in ay soo-afjarmeyso.THE END.
Your comment is some how provocative but one thing Somaliland is not your concern and you do not belong to it and your comment it does not catch water so shut up.
how carers about uk is another western countrey who dos not care about muslem world .what uk do for somailand .nothing
If an ambassador appointed by his boss the Foreign Minister says the minister is good, then Walaahi he is right!!. Any serious person, with an ounce of common sense knows that under Dr. Omar's handling of our Foreign policy, its all been downhill and the recent step taken by the UK is the final nail in his credibility.
As for the usual lost souls haunting the Somaliland websites, Somaliland has long gone, and won't back. Find something better to do, And remember the Somali proverb "hadal badani haan ma buuxiyo". If you have anything other than talk, bring it on..
Somali president is in UK to restore Somali-British relations once again it appears the separatists have failed miserably and they only have support from few Welsh elders…
When you don't even have a country how can you have a foreign policy? Let the imaginary guy continue with his imaginary dream and job…