The draft policy aims to ensure effective national stewardship in the oil and gas industry, prioritizing the role of local industry players and stakeholders in all operations associated with the sector
WINDHOEK, Namibia, August 20, 2024/APO Group/ —
Poised to drive socioeconomic development, resource monetization and sustainable growth, Namibia’s Ministry of Mines and Energy (www.MME.gov.na) have prioritized local content development in the country’s draft National Upstream Petroleum Local Content Policy.
The inter-governmental committee working on Namibian Content made a priority of local content development in the country’s oil and gas industry; to improve Namibian participation in the sector and boosting the country’s supply chain while continuing to welcome international investment and contribution.
Devised to safeguard equity and inclusion in the oil and gas industry while ensuring the policy is beneficial for all parties involved, the National Upstream Petroleum Local Content Policy is being expediated and will be ready for approval soon. The draft policy aims to ensure effective national stewardship in the oil and gas industry, prioritizing the role of local industry players and stakeholders in all operations associated with the sector.
“The draft policy outlines a pathway for Namibian citizens and companies to benefit from our natural resources by increasing their participation in the oil and gas industry, from exploration and production and throughout the entire industry’s value chain,” stated Namibian Minister of Mines and Energy Tom Alweendo. “We at the Ministry are striving to enact the framework to create an internationally competitive petroleum sector that maximizes the benefits for our people and leverages our natural resources for broader national development. We are laser-focused on achieving a balance between increasing local participation and attracting foreign investment,” stated Minister Alweendo.
Key tenets of the draft policy include sustainable resource development, energy independence and economic diversification; ensuring in-country resource wealth retention and adherence to global environmental standards. Furthermore, the policy aims to promote social inclusion, job creation, meaningful equity participation in service companies by previously disadvantaged Namibians, guaranteeing in-country processing through robust infrastructure development and public enterprise investments.
In addition, the Namibian Content policy aims to establish a stable, transparent regulatory framework for Namibian Content, making it a criterion for permits, licenses and contracts with strong institutions for enforcement.
The plan also seeks to leverage Namibia’s recent success in the oil and gas exploration arena, promote the transfer of technology, knowledge and skills to Namibians. International interest and participation in the country is poised to enable higher-value roles and collaboration with industry stakeholders to promote skills development and local value retention.
The draft policy outlines a pathway for Namibian citizens and companies to benefit from our natural resources by increasing their participation in the oil and gas industry
The policy also aims to facilitate meaningful participation and financing for Namibians and SMEs at all levels of the oil and gas value chain, ensuring broad sharing of resource development benefits and innovative financing mechanisms.
The vision of the draft Namibian Content Policy is to develop an internationally competitive supply chain in Namibia, maximizing output while making the country a preferred investment destination and hub for oil and gas goods and services.
“We are at the dawn of an energy revolution that will transform our economy. Discoveries in the Orange Basin suggest the biggest oil yield ever found in sub-Saharan Africa and there’s still so much to discover, both in the Orange Basin and in other locations. Which is why we must act proactively now. We must seize the opportunity to implement policies that will protect investors and Namibia’s best interests when it comes to our natural resources,” concluded Minister Alweendo.
The Ministry is moving with all deliberate speed to commence various stakeholders consultations and other engagements to revise the draft policy that will best serve the country, its people and our investors. The policy reflects the government’s desire to leverage its recent oil and gas discoveries for broader national development, with a focus on achieving a balance between local participation and attracting foreign investment.
The country’s foray into oil and gas is poised to reignite the economy by encouraging new investment and revitalizing the manufacturing sector. At the same time, a proactive introduction of solid Namibian content regulations will no doubt foster job creation, help combat energy poverty and promote hope and human dignity for the Namibian people.
About oil exprolation and discoveries in Namibia
On the back of a major exploration blitz in Namibia’s offshore in recent years – including the Graff-1, Venus-1, Jonker-1X, La Rona-1 and Lesedi-1X discoveries –, the country’s oil and gas sector is on the precipice of rapid transformation; having attracted interest from oil and gas supermajors including TotalEnergies, Shell, Chevron and ExxonMobil, as well as multinational energy corporations such as Galp and QatarEnergy. ReconAfrica’s recent spudding of the Naingopo exploration well – drilled in partnership with Namcor – is expected to yield positive results and lead to a multi-well exploration drilling campaign on PEL 73.
This year, Woodside Energy entered an exclusive option with Pancontinental Energy to acquire a 56% participating interest in PEL 87, which is anticipated to result in the development of license area’s first exploration well. Meanwhile, Rhino Resources – which recently entered a farm-in agreement with Azule Energy – awarded Halliburton a contract for its deep-water multi-well construction project in Block 2914A, aligning with the companies’ strategy to leverage local and international expertise to expediate Namibia’s oil and gas industry expansion. This year, Namcor and Chevron also entered an agreement granting the major an 80% operating interest in PEL 82, under which Namcor and Custos Energy will maintain a carried interest.
Issued by:
Office of the Minister
Distributed by APO Group on behalf of Ministry of Mines & Energy – Namibia.
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