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Namibia will use all forms of energy – Latest news

Namibia will use all forms of energy to ensure security of energy supply and encourage the development and productive use of the country’s various energy resources.

This was stated 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 May 14 to 16.

He highlighted the ongoing reviews of Namibia’s petroleum legal framework, which are necessary to create an enabling environment for investment and growth in the energy sector.

He said oil exploration and production regulations are being considered, which will cover development plans, work programs, drilling operations, studies and others.

He also discussed possible changes to fiscal conditions relating to the oil sector, especially taking into account that the first oil production is expected towards the end of the decade.

Some other amendments include a review of acreage fees and license fees.

“The Petroleum Law does not contain 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 should also undergo reviews and amendments; However, it would be beneficial to legislate some of the provisions for gas field development rather than leaving them in the hands of the government. totally negotiated under a contractual regime,” he said.

Nyambe also highlighted the need to include stabilization clauses in the Model Petroleum Agreement as this will greatly increase investor confidence and security for international companies and investors. It would also protect them from political risk and adverse legislative changes, which are often common in developing countries.

He highlighted the importance of local content in the Namibian oil industry and highlighted the need for a clear and stable regulatory framework to support local content requirements.

This framework should identify specific sectors to develop local capacity, maximize employment and development opportunities for Namibians, improve the participation of local suppliers throughout the value chain and promote Namibian ownership and financing in all sectors. industry levels.

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