Serving government, multinationals, financial institutions and entrepreneurs, Engling, Stritter & Partners advises clients that operate in Namibia’s renewable energy, mining and oil and gas industries. As the country continues to amend its investment laws, Energy Capital & Power spoke with Nawala Kamati-Unger, Partner at Engling, Stritter & Partners, about how updated legislation will help establish legal certainty and bolster investment across the industry.
What role does Engling, Stritter & Partners play within Namibia’s extractive sector?
Namibia’s recent hydrocarbon discoveries have the potential to make significant inroads towards the eradication of poverty in Namibia and to lift the living standards of a large part of the Namibian population. Within the sector, we advised one of the world’s largest offshore drilling contractors in 2022 concerning its anticipated drilling operations offshore Namibia, providing advice on regulatory authorizations and advising on the establishment of a legal entity in Namibia, operating licenses, import licenses, exchange control regulations, environmental, health and safety laws, and human resources. We have advised Galp Energia on operational matters and on a farm-out agreement with ExxonMobil Namibia concerning PEL 82. We acted for QatarEnergy (formerly Qatar Petroleum) in registering and establishing a local branch office in Namibia, as well as for Seadrill as local counsel, providing a legal framework on applicable laws concerning, among others, corporate law, contractual liabilities, tax, security, finance and employment. We have also provided legal advisory and transaction services to BW Kudu Ltd concerning the Kudu gas field and gas-to-power project, advising on license and petroleum agreement compliance and attending to engagements with the Ministry of Mines and Energy and NAMCOR.
Which renewable energy projects has the firm engaged with?
In the renewable energy sector, we have acted for subsidiaries of Enel Green Power Spa in a tender for the development of three 10 MW solar PV power plants on a built-own-operate basis, as well as Alten Solar Power in the development of the 37 MW Mariental Solar PV power plant, including obtaining project authorizations; establishing the security SPV and drafting and negotiating the security documents relating to the SPV; and advising on amendments to the project agreements. We have also acted for Namibia Infrastructure Finance Ltd in respect of several renewable energy projects, including the intended acquisition of a controlling interest in two solar PV power plants at Grootfontein and Otjiwarongo, respectively. Duties performed include due diligence with both projects; engagements with the relevant regulators; drafting and negotiating a share purchase agreement; drafting and filing the merger notification to the Competition Commission; and reviewing existing engineering, procurement and construction (EPC) and operation and maintenance (O&M) contracts.
How would you evaluate the strength of Namibia’s current legal and regulatory framework?
Generally, Namibia has a good legal framework, but some areas are outdated and require an update in order to bring them in line with modern best practices. Other areas – for example, green hydrogen – require the creation of new laws that are specific to them, which would help to establish and maintain an impactful and efficient hydrogen economy. For oil and gas, dedicated legislation and policy structures will serve to create legal certainty, which in turn will facilitate greater investment and the efficient development of our hydrocarbon resources.
How effective are Namibia’s mining policies and laws with regards to upholding environmental standards?
Our current legislation and policies in the mining sector already place emphasis on both environmental and social standards, with environmental clearance certificates and community engagements being mandatory before licenses are issued. We are aware that the government is in the process of amending the mining laws, and these amendments are likely to further stress these aspects.
What is your outlook for Namibia’s energy sector for the period 2023-2028?
The outlook is very positive for Namibia’s energy sector since there has been increased investment in its various aspects – renewable energy, mining and the development of oil and gas – due to an abundance of natural resources, a favorable regulatory environment and significant buy-in from the government.
Energy Capital & Power is a strategic partner of the Namibia International Energy Conference (NIEC) – taking place in Windhoek on April 23-25, 2024. The 6th annual conference unites industry leaders, business executives and policymakers to engage in dialogue, exchange ideas, create new partnerships and identify strategies to foster a prosperous energy industry in Namibia and beyond. For more information, please visit https://www.nieconference.com/
