Ministry of Mines and Energy’s Petroleum Commissioner Maggy Shino says preliminary results indicate that Namibia can provide approximately 45% of the services required by the oil and gas industry.
Shino noted that while 45% is significant, the Ministry aims to increase this capacity by creating a comprehensive database of suppliers to diversify services and enhance local capabilities.
“We currently have the capacity to provide approximately 45% of the services needed by the industry. While this is a significant figure, we aim to increase it further. To achieve this growth, we need Namibian men and women to actively engage with existing resources and enhance their skills. By doing so, they can contribute to expanding our service offerings and increasing this capacity,” Shino said at the second Oil and Gas Conference in the capital.
To support this growth, she said the Ministry plans to develop a comprehensive database of suppliers to diversify services and bolster local capabilities to better meet the industry’s demands.
“Policies will be crafted to reflect the specific needs of the Namibian market and support the growth of local industry,” Shino said.
Currently, the country is in the appraisal and exploration phase, which typically lasts from two to five years and involves significant drilling and data analysis.
She noted that the first Final Investment Decision (FID) is expected in 2025 stating that “following this, the subsurface development phase will commence, during which a range of services will be required. The goal is to advance the industry progressively, with both short-term and long-term investments needed at different stages”.
The Ministry is advancing from the FID stage into the next development phase, with a strong focus on enhancing local content. Last year, a draft local content policy was introduced and subjected to stakeholder analysis.
This led to the creation of an industrial baseline survey, conducted collaboratively by the Namibian Ministry of Mines and Energy and the industry, to assess existing local capabilities and refine the local content policy.
“Local content is mandated within the petroleum agreements, including provisions for Namibian employment and goods and services. These legal requirements ensure that local content remains a priority,” Shino explained.
This Industrial Baseline Study was conducted by Deloitte Namibia.
Country Leader in Namibia Melanie Harrison said based on the survey findings, the key next steps involve increasing awareness about supplier roles and compliance with health, safety, security and environment standards in the oil and gas industry.
She added that the steps also include finalising and enhancing the competitiveness of the local content policy, addressing infrastructure needs with a focus on the Namibian Ports Authority (NAMPORT), and exploring innovative financing solutions for small and medium-sized Enterprises (SMEs) are crucial.
“Expanding the national workforce database led by PetroFund and establishing a Supply Enablement Centre to assist suppliers with Requests for Quotations and Requests for Proposals are also important,” she said.
She also noted that investment in uplifting the capabilities of existing suppliers to meet Health, Safety and Environmental standards and the International Organisation for Standardisation compliance is necessary.
“Effective collaboration among oil and gas companies, suppliers, training institutions, universities, government bodies, and capital providers is essential, especially for addressing visa and other regulatory challenges,” Harrison noted.
