Rédaction Africa Links 24 with NJ Ayuk
Published on 2024-04-04 09:04:30
Namibia’s oil and gas sector is eagerly awaiting the production phase, with expectations that the first oil will not come until 2029, and the first gas-to-power project is set to begin in 2027 according to S&P Global analysts. But before these milestones are reached, Namibian lawmakers have an opportunity to implement effective policies that will benefit the country’s people.
Local content laws are essential policy tools used by governments across various industries, and Namibia has the advantage of learning from other oil- and gas-producing states. By adopting best practices and avoiding past mistakes, Namibia can capitalize on this advantage.
Recent petroleum discoveries in the Orange Basin by Shell and TotalEnergies have highlighted the need for local content directives in Namibia’s oil and gas sector. These discoveries in blocks Graff-1 and Venus-1 have sparked further exploration efforts, although the commercial viability is yet to be determined.
Namibia currently has a draft national upstream petroleum local content policy that is undergoing stakeholder consultation before being passed into law. The government aims to leverage these oil and gas discoveries for broader national development, striking a balance between local participation and foreign investment.
Despite the opportunities, Namibia faces challenges in developing and maintaining a successful oil and gas industry. Significant investments in infrastructure, workforce development, and regulatory frameworks are required, making it difficult for local companies to participate fully without external expertise.
It is crucial for Namibian policymakers to avoid government overreach while drafting local content regulations. Balancing local requirements with international competitiveness is key to success and will help overcome hurdles in the sector.
Trust and cooperation with the Namibian citizenry are essential for oil and gas companies to thrive in the country. Embracing corporate social responsibility is crucial to avoid community opposition and protests, which could delay or derail projects. Companies with strong CSR initiatives attract talent and create a positive work environment, including women.
The Namibian government is committed to promoting local content in the oil and gas industry, with plans to make it mandatory for companies to provide a local content plan to win contracts. Petroleum Commissioner Maggy Shino emphasized the importance of meaningful local participation and skills transfer to ensure the industry’s sustainable development.
Minister Tom Alweendo emphasized the role of Namibians in stepping up their entrepreneurial skills and personal responsibility to succeed in the oil and gas sector. With a proactive introduction of solid local content regulations, Namibia’s economy can be revitalized, new investments encouraged, and job creation boosted, ultimately promoting hope and dignity for the Namibian people.
By fostering cooperation, implementing effective legislation, and balancing local requirements with international competitiveness, Namibia can pave the way for a sustainable and prosperous oil and gas sector. The country’s journey towards local content development in the energy sector holds promise for economic growth and empowerment of its people.
Read the original article on The Namibian
