Local content policy nears regulatory phase
Ogone Tlhage
Namibia’s local content policy for its burgeoning oil and gas sector has reached a pivotal stage, with the regulatory framework now in development following Cabinet approval and extensive industry consultation, according to Carlo McLeod, Presidential Special Advisor and Deputy Head of the Upstream Petroleum Unit in the Presidency.
Designed to maximise benefits for Namibians in the emerging petroleum industry, the policy has gained strong traction among key stakeholders, setting the stage for enforceable regulations to drive local participation.
Industry response has been notably positive, with operators and service companies not only accepting the framework but also actively contributing to its enhancement, McLeod said. “They have accepted the policy in principle; we have also seen them going the extra mile to enhance the policy,” he added, emphasising the collaborative approach between government and industry stakeholders.
The next crucial step involves translating the policy into enforceable regulations with specific targets. McLeod stressed that while the policy establishes broad objectives, “the regulations will set the targets.”
This approach mirrors successful models in other petroleum-producing nations, where regulations mandate specific percentages of local participation in various sub-sectors.
Drawing from international best practice, McLeod referenced jurisdictions where 60% of a particular sub-sector is reserved for locals, but emphasised that Namibia’s targets will be guided by comprehensive baseline studies.
“We have seen in other jurisdictions where the regulation says that 60% of this particular sub-sector should be for locals. That decision needs to be informed, and that is where the industry standards baseline studies that were conducted will give us the ability to understand the situation on the ground, so that we can ensure these regulations speak to making sure there is protection for locals in these businesses,” he explained.
Namibia’s local content policy for its burgeoning oil and gas sector has reached a pivotal stage, with the regulatory framework now in development following Cabinet approval and extensive industry consultation, according to Carlo McLeod, Presidential Special Advisor and Deputy Head of the Upstream Petroleum Unit in the Presidency.
Designed to maximise benefits for Namibians in the emerging petroleum industry, the policy has gained strong traction among key stakeholders, setting the stage for enforceable regulations to drive local participation.
Industry response has been notably positive, with operators and service companies not only accepting the framework but also actively contributing to its enhancement, McLeod said. “They have accepted the policy in principle; we have also seen them going the extra mile to enhance the policy,” he added, emphasising the collaborative approach between government and industry stakeholders.
The next crucial step involves translating the policy into enforceable regulations with specific targets. McLeod stressed that while the policy establishes broad objectives, “the regulations will set the targets.”
This approach mirrors successful models in other petroleum-producing nations, where regulations mandate specific percentages of local participation in various sub-sectors.
Drawing from international best practice, McLeod referenced jurisdictions where 60% of a particular sub-sector is reserved for locals, but emphasised that Namibia’s targets will be guided by comprehensive baseline studies.
“We have seen in other jurisdictions where the regulation says that 60% of this particular sub-sector should be for locals. That decision needs to be informed, and that is where the industry standards baseline studies that were conducted will give us the ability to understand the situation on the ground, so that we can ensure these regulations speak to making sure there is protection for locals in these businesses,” he explained.
