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Local content, infrastructure development take centre stage at Namibia’s Energy Conference

by editor
April 26, 2025
in Oil & Gas
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Calls for intensified oil production, strengthened local participation, and urgent infrastructure development dominated discussions at the Namibia International Energy Conference in Windhoek this week.

African Energy Chamber Executive Chairman, NJ Ayuk, urged stakeholders to embrace Namibia’s energy potential and accelerate hydrocarbon development, while ensuring Namibians remained at the centre of the industry.

“My message is clear: produce every drop of hydrocarbon available and uplift your people. Drill, baby, drill, but with Namibians at the centre,” Ayuk said.

He warned that Africa, and Namibia in particular, must not be pressured to abandon oil and gas development while large parts of the continent remained energy-poor.

“Africa has every right to develop its resources for its people, the SADC region, and the world. There’s talk of decarbonisation, but how do you decarbonise when you’ve never carbonised?” he asked.

Ayuk also stressed the need for fiscal certainty, stating that investor confidence depended heavily on legal clarity and stable policies.

“We ask for improved fiscal terms. Oil in the ground has no value unless it changes lives,” he said.

Meanwhile, Namibia’s Petroleum Commissioner, Maggy Shino, echoed the urgency of preparing infrastructure to support the emerging sector and reiterated the government’s commitment to local content development.

“We are looking toward making sure the southern part of Namibia, especially the Orange Basin, becomes the energy hub not only for Namibia but for Africa. But for that to happen, we call for collaboration, private partnerships, and common solutions,” Shino said.

She confirmed that the government was finalising a local content policy aimed at providing clear guidelines to the industry.

“We are working hard to deliver a local content policy that defines exactly what this industry must do for Namibia. There should be no drilling mud imported into Namibia unless our Walvis Bay plants are running beyond capacity,” she said.

Shino also called for strict adherence to contractual obligations, including competitive bidding processes and support for locally invested businesses.

“Contracts must be open to competition, with no rollovers. We want to ensure a level playing field. Support the service companies that took a leap of faith on Namibia. They are the gateway to creating jobs and taking Namibians off the streets,” she said.

She further assured investors of Namibia’s commitment to a stable and supportive operating environment.

“We offer you sanctity of contracts, a stable economy, and a government aligned with the energy sector. We are designing production systems with low emissions in mind and prioritising environmental protection,” she said, adding: “We want you to prepare to ensure that all these wells are serviced in Namibia, by Namibians, for the Namibian economy.”

Also addressing delegates, Standard Bank Namibia Chief Executive, Erwin Tjipuka, described the country’s recent offshore oil discoveries as “particularly exciting,” with appraisals ongoing and resources showing transformative potential.

“This resource has the potential to significantly boost our economy, create jobs, and enhance energy security,” Tjipuka said.

He emphasised the importance of a robust local content policy to ensure that investments directly benefit local businesses and communities.

“A strong local content policy fosters growth and empowers citizens to participate actively in the energy transition,” he said.

Tjipuka added that Standard Bank Namibia remained committed to supporting infrastructure development within the energy sector.

“We aim to ensure local content requirements are met, enabling local enterprises to thrive. By leveraging these resources responsibly, we can create quality jobs and pursue a balanced energy strategy for sustainable development,” he said.

 

Tags: infrastructurelocal contentNamibiaoil and gasoil production

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