The Ministry of Mines and Energy says its working on finalizing a local participation policy for the country’s emerging oil sector.
The National Upstream Petroleum Local Content Policy aims to create an internationally competitive petroleum sector that maximises the benefits to the country through meaningful and sustainable participation by Namibians and local companies across all areas of the value chain.
“Government has looked at a number of interventions, most importantly the Upstream Local Content Policy which was drafted in 2021.The policy is currently under planning phase and is yet to undergo cabinet approval for finalization,” Carlo McLeod, Deputy Director of Compliance, Regulations and Economics in the Ministry of Mines and Energy told the Africa Energy Indaba which is currently underway in Cape Town, South Africa.
“We are scheduled to have a 3 day stakeholder consultative session in May on the policy after which the inputs will be considered. Thereafter he final document will be submitted to Cabinet for approval,” noted McLeod.
The policy aims to move Namibia beyond simply depending on taxes and royalties to gain more value from “backwards, sideways and forward linkages.”
“The policy aims to meaningfully address issues of expectations and its obligation as spelled out in the policy for oil companies in their productions necessitates investments in certain areas such as production of services, value creation, employment, creating skills, knowledge transfer and ownership,” he said.
On the same note, the draft policy highlights it’s objectives as provision of a clear and stable regulatory framework for Local Content equirements, identification of specific sectors for the development of local capacity.
It also aims to maximise employment and development of Namibians, similarly the participation of local suppliers along the value chain.
Additionally, the policy to ensure the transfer of technology, knowledge and skills and promote Namibian ownership and financing at all levels of the sector.
This comes as government is grappling with the issue of enhancing local ownership in the country’s mineral and oil exploration sectors at the backdrop of a concerning foreign domination.
Concerns have been raised that these sectors are dominated by foreign investors, a situation that has become a cash cow for a few lucky locals who sell their exploration licences to foreign investors.
Namibia’s oil sector is expected to become a game changer for the domestic economy following oil discoveries by TotalEnergies and Shell off the coast of Namibia, with a third discovery having been announced this week.
