Namibia needs to build a more transparent legal and regulatory framework to govern the country’s emerging oil and gas sector. Competent and accountable institutions are essential to ensure a level playing field for all actors operating in the industry, while the integrity of government institutions is vital to ensure that the country maximises the benefits of its oil industry.
Namibia needs to build a more transparent legal and regulatory framework to govern the country’s emerging oil and gas sector. Competent and accountable institutions are essential to ensure a level playing field for all actors operating in the industry, while the integrity of government institutions is vital to ensure that the country maximises the benefits of its oil industry. Competent and accountable institutions empower the country to avoid the resource curse. International experience shows that resource-rich countries tend to be more prone to corruption due to weak governance structures. The integrity of our institutions is a condicio sine qua non – an indispensable action and essential factor which Namibia cannot afford to compromise on, stated Bank of Namibia (BoN) Governor Johannes !Gawaxab
Namibia’s recent oil and gas discoveries present a transformational opportunity to shift the country’s economic structure and increase foreign reserves and transform the country into a major player within the regional energy market. !Gawaxab further said the proposed local content policy should specifically aim to maximise the benefits of the oil and gas sector to Namibian citizens.
Under investment-related recommendations, targeted incentive packages are required to reduce the investment risks faced by early adopters in the oil and gas sector and related initiatives. This will be achieved by enhancing and developing strategies that will target the participation of Namibian labour, goods and services, companies, ownership, and financing along the value chain. This comes as in November the apex bank called for a review of the country’s oil and gas exploration licensing to allow for more transparency and accountability.
The central bank proposes the introduction of an Excluded Parties List System, an electronic directory of individuals and organisations, which would be excluded from being allocated EPLs because of their relationship and proximity to officials in the Ministry of Mines and Energy.
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Global oil majors, TotalEnergies and Shell announced that they had made “significant” oil discoveries off Namibia, which the National Petroleum Corporation of Namibia (Namcor) estimates could generate US$5.6 billion in revenue for the country at peak production, which have the potential to double the country’s economy, which Bloomberg estimates at US$11 billion by 2040. It is estimated that Namibia’s discoveries could contain about 6.5 billion barrels of oil equivalent of recoverable reserves.
