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.
Actually Al-shabab was a spin-off to the Islamic Courts. After the Failure of UNISOM missions, the 'West' basically turned the back on 'Somalia', which meant that for a decade South and Central Somalia was controlled by Ruthless Warlords. The Somalis came together under the banner of the Islamic courts and without the help of the 'West' managed to achieve what some thought was impossible. They defeat All of the Warlords. I believe the Somalis can do this again in defeating Al-Shabab, who still control large chucks of South and Central Somali.
People need to understand that Somali problems can ONLY be resolved with Somali Solutions. Placing ALL of Africans military in Somalia will not bring about peace or stability in the long term, it just stores problems for the future. Somalis have got to own their problems. Its sad to see that Foreign ministry is seen more important to the Ministry of the interior and that the President, like his predecessors, would much rather be globe trotting rather than fixing his broken country.
Peace
MADeria
MADeria,
If SOMALIS specially those reside MOGADISHU and surrounding areas could solve their problem AMISOM would not there today.
In your words " The Somalis came together under the banner of the Islamic courts and without the help of the 'West' managed to achieve what some thought was impossible. They defeat All of the Warlords". you should know most islamic court leaders were member of warlords within couple of weeks all ex warlords join Islamic court example Indha cade one of them.
if mind does not work and people fail to use their brains, millions of dollars will not make a sense and shape things. A life with intellect will not shape itself. Somalis can only solve their problems No force can put Somali house in order unless somalis come under one banner and put their differences aside and get their things done.
The thought that UNO or Unisom will bring peace back to Somalia is totally a dream that will not come true.
@Ahmed
its true some Warlords got incorporated into the UIC, but there power was taken away, their road blocks were dismantled etc…Most of the warlords who had been defeated aligned themselves with the TFG that was created in Nairobi.
My point is that the warlord, who had defeated the USA, UN and others. Were only defeated by Somalis. I believe the same applied to Alshabab. And I believe Somalis are upto the task. When the TFG used Ethiopian troopers to crush the UIC, I believe that set a precedence, where it became OK to use foreign troopers to settle scores and unfortunately the mentality is still very much prevalent.
MAD Deria,
To honest warlors did not defeated US or UN that is the reality. the US WHICH had almost 19,000 Marines in Mogadoshu and surrouding areas, do think groub of warlords can defeate them? the answer No, forget about few Marines been dragged on the streets if the US wanted to stay somalia those days they could since they give the fire power. and even looking now they are the one who's paying all these UNISOM forces station in Mogadisho, baladweyn, baydhabo,jowhar, balcad etc. so, now indirectly they are incharge.
I said many time if Somalis specially those folks reside Mogadishu could figure out how to solve their problem they could have peace.
I believe peaceful areas in Somalia should go head and develop instead of waiting and watch the outcome of Mogadishu admin no need for that.
correction,,,, to be honest, do you think
point of correction it was not the marines they left after ensuring the food got to the people it was the US Army that f****ed things up.
Folks…the Article is about Somalia and Afghanistan. Now that the Taliban has been allowed
to open political office in Qatar and the US recognizes the Taliban how about the Alshabab
also opening Office in Qatar which should be recognized as well. IMO Dahir Aweys has a good
chance here since his top Alshabab Wing Hisbul Islah, a close allegiance to the Muslim
Brotherhood of Egypt. The Taliban is sure to to be giving a hard time to the weak Afghan Govt
and the Alshabab is also giving a hard time to the SFG weak Somalia under President HSM???
Cheers.
Those people should be respect the humanity and we respect the each and everyone. Custom writing providing quality essay for quality students.