The government says complying with the National Upstream Petroleum Local Content Policy is mandatory for potential investors in the oil and gas industry.
Following the discovery of oil and gas in recent years, Namibia moved to draft a National Upstream Petroleum Content Policy, intending to increase local participation in the value chain of goods and services.
The policy also seeks to create employment, train and develop Namibian citizens, enable transfer of technology, skills and knowledge, and ensure equity participation for Namibians at all levels of the petroleum sector.
Speaking at the International Association for Drilling Contractors underway in Windhoek, Ministry of Mines and Energy’s Petroleum Commissioner Maggy Shino said “local content is a must and not an option to have in the Namibian petroleum industry”.
“As an enabler for economic growth, we are looking for inclusive participation that goes beyond just employment. We are looking for local content that is visible in industrialisation, capacity building and through skills and technology transfer.”
She urged Namibians to make a conscious decision to play their part and only have engagements that contribute to building the capability of Namibia.
In the same vein, Shino said the call for energy transition is very loud, a development that is being overwhelmingly embraced by Namibians.
“Our transition is coming from a point of energy deficit and therefore we are going to produce those energy resources to close that gap. As such, Namibia will develop her fossil fuel for economic growth and industrialisation,” she said.
“We have an ambitious development agenda, inclusive of one of the world’s biggest renewable energy developments, and an aggressive green hydrogen plan in motion. A growth ambition inclusive of blue hydrogen production and many more.
“It doesn’t get better than this. The fact that Namibia is positively responding to the call for energy transition gives us a unique opportunity that we are addressing climate change early enough, therefore designing all our activities to be low-emission developments,” she added.
Namibia has seemingly refused to bend to global pressure to avert its ambitious future of being an oil-rich country.
Recent oil discoveries have posed a high chance of commercial value. This positive news comes at a time when the world is championing decarbonisation through renewable energies.
Fortunately, Namibia finds itself at the centre of being a global player in renewable energy boasting with abundance of sun and wind, which has necessitated green hydrogen projects.
“The objective is energy security. And I call upon all of you to be part of the quest for Namibia to eradicate the national and regional energy deficit. With our massive resources and smart regional cooperation to our gas to power combined with the world-class power infrastructure, we can and will contribute to energy security for Africa,” she said.
These developments she believes will be achieved with the unmatched peace and stability that Namibia offers, including the stable fiscal regime and legislative framework.
“Our approach to the management of these resources is carefully considered through a benefit for all encapsulated in our Welwitchia Sovereign Wealth Fund and the Local Content Policy aspirations. Therefore, with very strong environmental ambitions and standards that are enshrined in our Constitution, Namibia is poised to be an example in the energy sphere,” she added.
