By: Nghiinomenwana-vali Hangala
Operators and tier 1 service companies in the oil and gas industry have been instructed to build capacity in local companies for procurement and vendor onboarding processes, and to mentor local entrepreneurs to enable them to participate in the full oil and gas value chain.
Modestus Amutse, Minister of Industries, Mines, and Energy, made these remarks in his keynote address at the Petrofund Upstream Oil and Gas Local Suppliers’ Workshop last week.
Namibia is waiting for the Final Investment Decision (FID) on various wells, with the Venus and Mopane blocks being the most promising.
However, local capacity is being questioned as the country readies for the industry, with a local content law being drafted.
Addressing operators and tier 1 services on enabling local entrepreneurs, Amutse said “I also implore you to invite them to visit your facilities and yards to give them real exposure to the services you render and the standards you expect.”
Amutse noted that the platform marks an important step in advancing local content development, strengthening Namibian participation across the petroleum value chain, and enhancing the technical, operational, and compliance capabilities of the nation’s micro, small, and medium enterprises (MSMEs).
With that, he said the initiative is directly aligned with the government’s strategy to elevate the contribution of the MSME sector to the national economy from 16 per cent to an upward steady growth as set out under the Sixth National Development Plan (NDP 6).
As Namibia progresses towards its first FID, Amutse said the session is a critical milestone and brings the prospect of first oil closer to reality.
He added that the Namibian oil trajectory places a collective responsibility on the country to accelerate local capacity development.
The President has directed that the fortunes of Namibia’s oil and gas industry must translate into economic opportunities and thereby uplift Namibians through all opportunities, such as jobs and business operations.
NDP 6 prioritises the development of the upstream petroleum industry as a key driver of socio-economic growth, while underscoring the vital role of MSMEs in advancing inclusive growth, job creation, and industrialisation.
“However, this ambition can only be realised by deliberately equipping and integrating local businesses into the sector’s value chain through targeted support in capacity building, access to finance, and market participation,” stated Amutse.
He said the workshop was an important step because Namibia is building an industry from the ground up.
“Our local businesses must gain a clear understanding of the upstream petroleum life cycle, investment decision processes, and procurement frameworks utilised by operators,” remarked Amutse.
He noted that a strong understanding of tendering procedures, qualification criteria, health and safety expectations, standards compliance, and operational requirements will enable MSMEs to position themselves competitively.
He also called upon financial institutions to avail funding mechanisms that will help local enterprises access capital and prepare for procurement contracts.
“I, therefore, urge our entrepreneurs, managers, and technical teams to fully embrace this learning opportunity. Now is the moment to grasp how to secure the certifications, partnerships, systems, and financial readiness required to participate meaningfully in the upstream oil and gas sector,” Amutse advised.
He also acknowledged that the role of MSMEs is indispensable; they are the backbone of inclusive growth, job creation, and national capability development.
The Namibia Oil and Gas Bi-Annual Industry Report for July-December 2025 proved to be pivotal for Namibia’s oil and gas industry, marking a clear shift from frontier exploration towards structured appraisal and development planning.
Offshore activity in the Orange Basin remained robust throughout 2025, with continued exploration, appraisal drilling, and subsurface evaluation consolidating its position as one of the most prospective deepwater basins globally.
The sustained momentum reflected growing technical confidence in the scale and quality of discovered resources and reinforced Namibia’s standing in the global upstream landscape.
According to the Oil and Gas Report, during the second half of 2025, the industry moved decisively beyond early-stage wildcat drilling into more advanced phases of appraisal, pre-development studies, and project maturation.
Operators are increasingly focused on delineating discovered resources, refining development concepts, and reducing geological and commercial uncertainty, signalling a transition towards long-term project viability rather than speculative exploration.
Namibia is rapidly emerging as a significant player in the global oil and gas industry, attracting major international companies due to its promising offshore and onshore basins.
The Orange Basin has been the focal point of substantial exploration activities, with companies like Shell, TotalEnergies, and Galp making notable discoveries.
These developments, in collaboration with Namibia’s national oil company, NAMCOR, are positioning the country as a potential hub for energy production in the region.
