Cabinet approves local content policy to boost oil industry
Cabinet has approved the National Upstream Local Content Policy, marking a major milestone as the country targets its first oil production by 2029. This policy aims to reduce dependency on foreign expertise by integrating local businesses and workforce into the oil and gas value chain, fostering economic sovereignty and empowering Namibians.The African Energy Chamber (AEC) praised the policy for balancing local interests with the needs of international oil companies, providing a model for other African nations.
Namibia is set to produce oil from the Venus and Graff discoveries by 2029, with the Mopane field potentially accelerating this timeline. Major discoveries since 2022 in the Orange Basin, including Graff-1X and Venus-1X, have attracted global energy giants like TotalEnergies, Shell, and Galp Energias, the latter currently appraising the Mopane-1A well. Final Investment Decisions (FID) for key fields are expected by the end of 2024, further solidifying Namibia's oil prospects.
Recognising the importance of local participation, the government’s policy seeks to build a globally competitive supply chain, promote sustainable development, and enhance technological expertise. It addresses challenges in Namibia’s capital-intensive and technologically driven upstream sector, which traditionally relies heavily on foreign resources and labour.
A key feature of the policy is its alignment with national development frameworks such as the National Development Plan and Vision 2030. It aims to encourage local companies to participate in procurement, manufacturing, and service provision, ensuring that oil wealth benefits remain within Namibia.
Oil operators must now submit ‘Local Content Plans’ detailing commitments to hiring local labour, engaging Namibian businesses, and investing in workforce training when applying for licenses. The Ministry of Mines and Energy will monitor compliance to maximize local participation.
The policy also emphasises regulatory stability to attract responsible investment while safeguarding local interests. “With discoveries exceeding 11 billion barrels, this policy is vital,” said NJ Ayuk, AEC Executive Chairman. “It sets a powerful example for Africa on leveraging oil wealth for long-term development and job creation, positioning Namibia as a key energy player with its people at the forefront.” – Distributed by APO on behalf of the Africa Energy Chamber.