Namibia urgently requires regulatory reforms to establish much-needed transparency and accountability in its emerging oil and gas sector.
“There are significant gaps, particularly in the later stages of the oil and gas project lifecycle, post-exploration. We may need distinct regulations for development and production. It’s imperative to address this now, as delaying until production commences might prove too late. We must establish comprehensive measures and ensure their enforcement,” said energy lawyer Shakwa Nyambe of SNC Incorporated.
Nyambe, known for representing various international and national oil and gas companies and industry service providers, suggests that the Namibian government should draw lessons from proficient energy resource management in other jurisdictions like Norway, Tanzania, and Canada.
“Following the global models, an autonomous Namibian regulatory body could grant licenses, oversee local involvement, enforce environmental protocols, and monitor petroleum activities. Such a regulatory entity can thwart political interference and minimize corruption risks,” Nyambe said.
Nyambe observed that in line with its 2017 national energy policy, the Namibian government has already acknowledged the necessity for a local content legal framework to bolster Namibian workforce engagement and local business participation in the oil and gas sector and additionally, it has recognized the need for an independent regulator distinct from the Minister of Mines and Energy.
“Consequently, we anticipate their commitment to implement this policy by amending existing legislation and regulations to incorporate these provisions,” Nyambe said.
Given the considerable financial stakes involved, Nyambe emphasized the urgency of rectifying shortcomings, instating local content requirements to facilitate Namibian company participation across the value chain, and ensuring transparency and accountability, possibly through the establishment of an autonomous upstream regulator.
“The oil and gas industry operates with its unique complexities, requiring legal professionals well-versed in pertinent legal matters and capable of offering business guidance. This encompasses adhering to local regulations and global standards, spanning from project conceptualization through execution and project closure,” Nyambe elaborated.
This comes as oil majors, TotalEnergies and Shell have made significant oil disocveries offshore Namibia, poised to evolve into multi-billion-dollar undertakings. Additional 2023 findings have bolstered Namibia’s rapid ascent as a promising frontier for African energy. Consequently, the nation’s economy is projected to double within 15 to 20 years following the onset of production.
