Justicia Shipena
The Presidency, through its Upstream Petroleum Unit, has launched public consultations on the draft National Upstream Local Content Policy in Lüderitz.
The first session was held on Monday.
The consultations, which will run until 17 September, will cover all 14 regions.
The Presidency has urged the public, including business represented, youth, and local authorities, to participate in shaping the policy. The next meeting is scheduled for Mariental on Friday.
In 2022, Cabinet approved the drafting of the policy to increase local participation in the oil and gas sector.
The following year, the ministry of mines and energy announced efforts to finalise the framework.
The draft policy is designed to build a globally competitive sector, increase Namibian ownership, and promote financing and business opportunities across the value chain.
It emphasises skills transfer, technology adoption, and value extraction through backward, sideways, and forward linkages.
The sixth National Development Plan (NDP6) sets targets for the sector by 2030.
These include raising carried participation from 10% to 15% over the next five years, producing 150 million barrels of oil equivalent, increasing gas production to 130 million standard cubic feet per day, and creating 22 800 jobs.
Over the past three years, royalties from mining contributed N$5.96 billion ($309 million) to state revenue.
The deputy head of the Upstream Petroleum Unit, Carlo McLeod, said the government is committed to collaboration, skills development, job creation, and empowering local businesses.
The governor of the ||Kharas region, David Gertze, stressed the importance of inclusivity and shared prosperity.
Residents in Lüderitz welcomed the consultations but raised concerns about skills shortages and limited business capacity.
The discussions come as the government prepares for the development of a Namibia Oil and Gas Logistics Supply Base, supported by Namport’s N$4 billion expansion of the Lüderitz port.
Major players such as Shell, TotalEnergies, and Qatar Energy have already made offshore discoveries.
ExxonMobil signed an agreement with Namcor, the French company Maurel & Prom began a five-well drilling campaign in 2022, and Chevron secured a licence in the Orange Basin.
Other companies include Woodside Energy, Pancontinental Energy, and Rhino Resources.
Previously, the Institute for Public Policy Research (IPPR) has noted that the local content policy will likely lead to revisions of the Petroleum Act, its regulations, and model agreements between the Mines and Energy Ministry and international oil firms.
IPPR also warned of risks of international companies using bribes to set up local fronts to meet policy requirements.
