WINDHOEK, Sept. 15 — Namibia‘s final draft petroleum local content policy will require companies providing goods, services, and financing in the oil and gas sector to be majority Namibian-owned, with at least 30 percent of shares held by previously disadvantaged persons, as part of efforts to capture more value from recent offshore oil discoveries.
“A company will be regarded as ‘local’ if it is incorporated under Namibian law, with at least 51 percent of its equity held by Namibian citizens and 30 percent equity held by previously disadvantaged persons, and its principal place of business is located in Namibia,” says the policy report shared on Friday.
The document also proposes innovative financing schemes and business incubation programs to help Namibian investors and small businesses enter the capital-intensive petroleum value chain.
The National Petroleum Corporation of Namibia, the state oil company, is set to act as the primary vehicle for local participation in upstream projects, while foreign operators will be encouraged to form joint ventures with Namibian firms under strict anti-fronting rules, the document adds.
Employment and skills development are key components of the framework, which requires companies to submit employment and training plans, integrate Namibians into their operations for on-the-job training, and fund upskilling initiatives.
“Companies are expected to adopt recruitment, training, and development practices that reflect this commitment to nurturing local talent,” the policy notes.
The procurement will be localized through a transparent public bidding process, with a rule giving preference to Namibian suppliers whose bids are within 10 percent of the lowest offer.
The policy also mandates technology and knowledge transfer programs, including research partnerships and innovation hubs, to build Namibia‘s capacity in petroleum engineering and operations. According to the report, annual reporting on procurement, employment, and technology transfers will be mandatory.
Operators that meet the benchmarks will receive compliance certificates, which are prerequisites for tax incentives, cost recovery benefits, and continued access to licenses, the policy states.
Namibia has emerged as one of Africa’s most promising new oil frontiers following a series of major offshore discoveries since 2022.
International energy giants Shell, TotalEnergies, QatarEnergy, and Galp have reported multiple finds in the Orange Basin, raising expectations that the southern African country could become a significant oil producer later this decade. (Xinhua)
