Namibia Approves Local Content Policy as Offshore Oil Development Advances

Namibia has approved a National Upstream Petroleum Local Content Policy as major offshore oil discoveries move closer to development, with the government seeking to increase the participation of local businesses and workers in the emerging petroleum industry. The policy focuses on local procurement, employment, skills development and technology transfer, with Namibian companies expected to compete for opportunities across the petroleum value chain.

Special Advisor and Head of the Upstream Petroleum Unit Kornelia Shilunga announced the policy on August 19, following the Namibia Oil and Gas Conference held from August 12 to 14. The government outlined measures aimed at increasing domestic participation as offshore discoveries move towards development and large-scale procurement.

The policy is intended to give Namibian businesses greater access to opportunities while encouraging them to build the capabilities needed to compete for contracts.

Venus brings local-content policy into focus

The timing is significant as TotalEnergies’ Venus project in the Orange Basin moves closer to a final investment decision. The project is designed to produce about 150,000 barrels of oil per day at peak, with first oil targeted for late 2029 or early 2030. Its initial development is expected to target about 750 million barrels of oil equivalent in recoverable resources. TotalEnergies has said Venus is technically ready for sanction, although the final investment decision remains linked to fiscal discussions with the Namibian government.

As the project moves towards development, procurement decisions will determine which companies secure work across engineering, construction, fabrication, marine services, logistics and other activities. This creates an opportunity for Namibian companies, but the government is making it clear that local participation will need to be supported by actual capacity. Shilunga said businesses need to develop the capabilities required to compete for contracts rather than simply rely on protected access to work.

Government Seeks More Value From Oil

Namibia is also reviewing its petroleum legal and fiscal framework as it negotiates with investors over major offshore discoveries. The government wants the emerging oil and gas industry to contribute to wider industrial development rather than generate revenue from crude production alone.

At the Namibia Oil and Gas Conference, officials identified opportunities in refining, petrochemicals, gas-to-power, logistics, fabrication, marine services, storage and engineering. The programme also included discussions on local-content participation, technical upskilling, financing and supplier opportunities, with pitching sessions giving Namibian businesses an opportunity to present their capabilities to potential partners and buyers. For local companies, the challenge will be developing the technical, financial and operational capacity needed to compete for work as major projects move into procurement.

Infrastructure will determine how much stays in Namibia

Shilunga identified Walvis Bay and Lüderitz as potential logistics and service hubs for offshore petroleum operations, but ports, supply bases, roads and airports will need to expand alongside the industry to support increased activity.

The local-content policy therefore comes as Namibia prepares both its companies and infrastructure for a larger offshore petroleum industry. The policy could also become relevant beyond Venus. TotalEnergies has received government approval to become operator of the Mopane discovery after agreeing to acquire a 40% interest from Galp, potentially adding another major offshore project to Namibia’s petroleum pipeline.