Namibia to use all forms of energy
Written by on May 24, 2024
Namibia will use all forms of energy to ensure security of energy supplies and encourage development and productive use of the country’s diverse energy resources.
This was said by Windhoek lawyer Shakwa Nyambe, managing partner of law firm SNC Incorporated, during a presentation to international leaders and industry professionals at the Africa Energies Summit 2024, held in London from 14 to 16 May.
He highlighted the ongoing reviews of Namibia’s petroleum legal framework, which are necessary to create a conducive environment for investment and growth in the energy sector.
He said petroleum exploration and production regulations are being considered, which will cover development plans, work programmes, drilling operations, surveys and others.
He also discussed the potential amendments for the fiscal terms concerning the petroleum sector, especially with the first oil production expected towards the end of the decade.
Some other amendments include a review for acreage fees and licence fees.
“The Petroleum Act does not have specific provisions for the development of natural gas fields, which is more definitively covered in the Model Petroleum Agreement.
“As a potential gas producing region and in view of gas operations, the Model Petroleum Agreement also ought to undergo reviews and amendments, however, it would be beneficial to legislate some of the provisions for the development of gas fields rather than leave them to be fully negotiated under a contractual regime,” he said.
Nyambe also stressed the need to include stabilisation clauses in the Model Petroleum Agreement, as this will greatly increase investor confidence and security for international companies and investors. It would also shield them from political risk and adverse legislative changes, which are often common in developing countries.
He highlighted the importance of local content in Namibia’s petroleum industry, stressing the need for a clear and stable regulatory framework to support local content requirements.
This framework should identify specific sectors for developing local capacity, maximise employment and development opportunities for Namibians, enhance local supplier participation across the value chain and promote Namibian ownership and financing at all levels of the industry.
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