WINDHOEK, April 24 (Reuters) - Namibia expects to finalise its policy on local participation in the oil and gas sector by year-end, the energy minister said on Wednesday, as the country looks to industrialize and share economic benefits to its people.
The southern African country, which is yet to produce any oil or gas, has become a global exploration hotspot after offshore discoveries by TotalEnergies and Shell , and wants to accelerate the milestone of first output.
Namibia released a draft National Upstream Local Content policy in 2021 and is consulting with energy companies before submitting the policy to state law drafters for a bill to be sent to parliament.
The draft, without providing specific targets, aims to increase local participation across the petroleum sector’s value chain, from technology transfers to helping train skilled workers and enhancing job creation in a country where unemployment and poverty are high, according to the World Bank.
"Our ambition to finish the policy itself is before the end of the year and only then be able to table the bill in the next session of parliament, February next year," Tom Alweendo, energy and mines minister told Reuters on the sidelines of an energy conference.
Many African countries are placing greater emphasis on local content clauses, at times scaring investors, as they seek to reap more of the economic windfall associated with large energy projects, with Uganda for example setting a local content target of 40% in its petroleum sector.
"We don't want to rush local content laws that nobody understands and that nobody thinks is in their best interest and eventually doesn't work," Alweendo said.
He added that petroleum agreements the ministry signed with energy companies already required them to make use of Namibians, and also local service providers, although it is not as detailed as a standalone bill will be. (Reporting by Wendell Roelf Editing by Mark Potter)
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