Latest news with #offshoreoil
Zawya
8 hours ago
- Business
- Zawya
From Discovery to Delivery: Building a Legal Framework for Namibia's Midstream Infrastructure (by Rachel Mushabati)
By Rachel Mushabati, Senior Associate Attorney&Country Head – CLG Namibia ( Namibia's recent offshore oil discoveries mark a pivotal moment in the country's energy sector. With major players such as Shell, TotalEnergies, QatarEnergy, and Galp uncovering significant reserves, Namibia is poised to become a key oil producer. However, while exploration and production activities have gained momentum, the midstream sector; involving transportation, storage, and refining of petroleum, remains underdeveloped. A strong legal framework for midstream infrastructure is essential to ensure that Namibia maximizes economic benefits, attracts investment, and builds a sustainable energy industry. CLG Legal and Business Advisory, with its extensive advisory experience across Africa, is uniquely positioned to support this transition. CLG has advised on midstream regulatory frameworks, infrastructure structuring, and investment promotion strategies in various jurisdictions, and brings this expertise to the Namibian context. Understanding Midstream Infrastructure and Its Importance Midstream infrastructure serves as the critical link between oil extraction and the end consumer. This includes pipelines, refineries, storage facilities, and specialized port infrastructure that facilitate the transportation of crude oil and natural gas. Without adequate midstream infrastructure, Namibia risks becoming an exporter of raw crude without capturing additional value through processing and distribution. A robust midstream sector can boost job creation, industrial development, and energy security, making it a strategic national priority. Market studies from other African producers have shown that well-developed midstream infrastructure can contribute up to 30% more in local value addition compared to direct crude exports.[1] In Ghana, for instance, domestic refining and pipeline infrastructure contributed significantly to its GDP growth in the petroleum sector between 2016–2022. Namibia has the opportunity to tap into similar economic potential.[2] Existing Legal Framework and Gaps Namibia's petroleum sector is primarily governed by the Petroleum (Exploration and Production) Act 2 of 1991 and the Petroleum Products and Energy Act 13 of 1990. These laws focus largely on upstream activities and the regulation of downstream petroleum products. However, there is no dedicated midstream regulatory framework. The absence of clear midstream regulations means there is little guidance on ownership structures, investment incentives, and operational guidelines for pipelines, storage, and refining facilities. For example, Nigeria's midstream sector prior to the Petroleum Industry Act (2021) faced significant bottlenecks due to the absence of a clear regulatory framework, particularly regarding third-party access and tariff setting for pipeline infrastructure. These issues led to investor reluctance and underinvestment, which were only addressed after the establishment of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (Nigeria Petroleum Industry Act, 2021). Lessons from Other Oil-Producing Countries Namibia can draw inspiration from countries that have successfully developed midstream infrastructure through effective regulation. Norway, for example, has established a robust midstream legal framework that ensures state participation in pipelines and refineries while promoting private investment.[3] Ghana has a dedicated Petroleum Midstream Regulatory Authority that oversees infrastructure development and ensures compliance with environmental and safety standards. Similarly, Nigeria's Petroleum Industry Act (2021) introduced the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which provides clear guidelines on pipeline ownership and operations. The Role of Key Stakeholders in Strengthening Namibia's Legal Framework To unlock the full potential of the midstream sector, coordinated action is required among various stakeholders: Government Ministries and Regulators: Responsible for drafting legislation, setting environmental and safety standards, and issuing licenses. Private Sector and Investors: Bring in capital and technical expertise, while also needing legal certainty to invest confidently. State-Owned Entities: Can serve as infrastructure operators and strategic partners in public-private partnerships. Civil Society and Communities: Essential for ensuring environmental accountability and social license to operate. Legal Advisory Firms: Provide technical assistance in drafting laws, structuring transactions, and navigating policy reform. Strengthening Namibia's Midstream Legal Framework To address the existing gaps, Namibia must develop a comprehensive legal framework that clearly defines the governance of midstream activities. A dedicated Midstream Act would be a crucial first step, providing legal certainty on pipeline infrastructure, refineries, storage, and transportation. Encouraging public-private partnerships can drive midstream development while ensuring local participation. Establishing an independent regulatory authority will help enhance transparency, streamline approvals, and enforce compliance. Additionally, Namibia should implement policies that prioritize local employment and skills transfer, ensuring that midstream investors contribute to national workforce development. Environmental and safety standards must also be strengthened to mitigate risks associated with pipeline integrity, spill prevention, and emergency response. To further attract investors, tax breaks, duty exemptions, and streamlined licensing processes should be introduced to make Namibia a more competitive destination for midstream infrastructure development. Conclusion For Namibia to fully capitalize on its oil discoveries, it must establish a strong midstream legal framework that facilitates the efficient transportation, storage, and processing of petroleum resources. Without this, the country risks losing significant economic value and remaining dependent on crude exports. By adopting best practices from other oil-producing nations and implementing strategic legal reforms, Namibia can create a thriving midstream sector that benefits both investors and citizens alike. CLG stands ready to support this transformation, leveraging its pan-African expertise in midstream regulation, infrastructure development, and legal advisory. Our team has been instrumental in shaping midstream legal regimes across West and Central Africa, and we are committed to helping Namibia build a regulatory foundation that supports sustainable growth and long-term prosperity. [1] Ruben, R., Kuijpers, R.,&Dijkxhoorn, Y. (2022). Mobilizing the Midstream for Supporting Smallholder Intensification. Land, 11 (12), 2319. [2] Oxford Business Group. 'Ghana's energy production targets and exploration attract investment'. Retrieved from [3] Norwegian Petroleum Directorate (2021). 'Midstream Regulatory Framework and Investment Guidelines'. Distributed by APO Group on behalf of CLG.
Al Jazeera
4 days ago
- Business
- Al Jazeera
In Brazil, a fight over offshore drilling tests Lula's climate ambitions
Sao Paulo, Brazil – In the far north of Brazil, where the Amazon River collides with the sea, an environmental dilemma has awakened a national political debate. There, the Brazilian government has been researching the possibility of offshore oil reserves that extend from the eastern state of Rio Grande do Norte all the way to Amapá, close to the border with French Guiana. That region is known as the Equatorial Margin, and it represents hundreds of kilometres of coastal water. But critics argue it also represents the government's conflicting goals under Brazilian President Luiz Inácio Lula Da Silva. During his third term as president, Lula has positioned Brazil as a champion in the fight against climate change. But he has also signalled support for fossil fuel development in regions like the Equatorial Margin, as a means of paying for climate-change policy. 'We want the oil because it will still be around for a long time. We need to use it to fund our energy transition, which will require a lot of money,' Lula said in February. But at the start of his term in 2023, he struck a different stance. 'Our goal is zero deforestation in the Amazon, zero greenhouse gas emissions,' he told Brazil's Congress. As the South American country prepares to host the United Nations Climate Change Conference (COP30) later this year, those contradictions have come under even greater scrutiny. Nicole Oliveira is one of the environmental leaders fighting the prospect of drilling in the Equatorial Margin, including the area at the mouth of the Amazon River, known as Foz do Amazonas. Her organisation, the Arayara Institute, filed a lawsuit to block an auction scheduled for this week to sell oil exploration rights in the Equatorial Margin. She doubts the government's rationale that fossil-fuel extraction will finance cleaner energy. 'There is no indication of any real willingness [from the government] to pursue an energy transition,' Oliveira said. 'On the contrary, there is growing pressure on environmental agencies to issue licenses and open up new areas in the Foz do Amazonas and across the entire Equatorial Margin.' Last Thursday, the federal prosecutor's office also filed a lawsuit to delay the auction, calling for further environmental assessments and community consultations before the project proceeds. The fate of the Equatorial Margin has exposed divisions even within Lula's government. In May 2023, the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) — the government's main environmental regulator — denied a request from the state-owned oil company Petrobras to conduct exploratory drilling at the mouth of the Amazon River. In its decision, the IBAMA cited environmental risks and a lack of assessments, given the site's 'socio-environmental sensitivity'. But Petrobras continued to push for a licence to drill in the region. The situation escalated in February this year when IBAMA again rejected Petrobras's request. Lula responded by criticising the agency for holding up the process. He argued that the proceeds from any drilling would help the country and bolster its economy. 'We need to start thinking about Brazil's needs. Is this good or bad for Brazil? Is this good or bad for Brazil's economy?' Lula told Radio Clube do Para in February. On May 19, the director of IBAMA, a politician named Rodrigo Agostinho, ultimately overruled his agency's decision and gave Petrobras the green light to initiate drilling tests in the region. Petrobras applauded the reversal. In a statement this month to Al Jazeera, it said it had conducted 'detailed environmental studies' to ensure the safety of the proposed oil exploration. It added that its efforts were 'fully in line with the principles of climate justice, biodiversity protection, and the social development of the communities where it operates'. 'Petrobras strictly follows all legal and technical requirements established by environmental authorities,' Petrobras wrote. It also argued that petroleum will continue to be a vital energy source decades into the future, even with the transition to low-carbon alternatives. Roberto Ardenghy, the president of the Brazilian Petroleum and Gas Institute (IBP), an advocacy group, is among those who believe that further oil exploitation is necessary for Brazil's continued growth and prosperity. 'It is justified — even from an energy and food security standpoint — that Brazil continues to search for oil in all of these sedimentary basins,' he said. Ardenghy added that neighbouring countries like Guyana are already profiting from 'significant discoveries' near the Equatorial Margin. 'Everything suggests there is strong potential for major oil reservoirs in that region. The National Petroleum Agency estimates there could be around 30 billion barrels of oil there. That's why we're making such a major effort,' he said. But critics have argued that the area where the Amazon River surges into the ocean comprises a delicate ecosystem, lush with mangroves and coral reefs. There, the pink-bellied Guiana dolphin plies the salty waters alongside other aquatic mammals like sperm whales and manatees. Environmentalists fear exploratory drilling could further endanger these rare and threatened species. Indigenous communities at the mouth of the river have also resisted Petrobras's plans for oil exploration, citing the potential for damage to their ancestral fishing grounds. In 2022, the Council of Chiefs of the Indigenous Peoples of Oiapoque (CCPIO) formally requested that the federal prosecutor's office mediate a consultation process with Petrobras, which has not taken place to this date. The federal prosecutor's office, in announcing Thursday's lawsuit, cited the risk to Indigenous peoples as part of its reasoning for seeking to delay the auction. 'The area is home to a vast number of traditional peoples and communities whose survival and way of life are directly tied to coastal ecosystems,' the office said. However, in its statement to Al Jazeera, Petrobras maintains it had a 'broad communication process' with local stakeholders. It added that its studies 'did not identify any direct impact on traditional communities' resulting from the drilling. But some experts nevertheless question the safety of oil exploration in the region, including Suely Araujo, who used to chair IBAMA from 2016 to 2018. Now the public policy coordinator for the advocacy coalition Observatório do Clima, Araujo pointed to practical hurdles like the powerful waters that gush from the Amazon River into the ocean. 'The area is quite complex, with extremely strong currents. Petrobras has no previous exploration experience in a region with currents as strong as these,' Araujo said. 'So it's an area that increases the risk of accidents even during drilling.' Still, she fears there is little political will within the Lula government to stop the oil exploration — and that awarding drilling licences could be a slippery slope. 'All the evidence is there for this licence to be approved soon,' she said, referring to the project planned near the river mouth. 'The problem is that if this licence gets approved — let's say, the 47 new blocks in the Foz do Amazonas that are now up for auction — it will become very difficult for IBAMA to deny future licences, because it's the same region.' Oliveira, whose organisation is leading the legal fight against the exploration licences, echoed that sentiment. She said it is necessary to stop the drilling before it starts. 'If we want to keep global warming to 1.5 degrees [Celsius], which is where we already are,' she said, 'we cannot drill a single new oil well'.
Zawya
09-06-2025
- Business
- Zawya
Oceaneering Supports Angolan Oil Growth, Joins Angola Oil & Gas (AOG) 2025 as Silver Sponsor
Subsea engineering and applied technology company Oceaneering has joined Angola's premier industry event – Angola Oil&Gas (AOG) – as a Silver Sponsor. With a strong track record of delivering innovative solutions that support offshore oil and gas projects, Oceaneering helps drive Angolan hydrocarbon growth. The sponsorship reflects this commitment and is expected to open new doors for partnerships within the industry. Angola's offshore oil and gas market is growing rapidly, driven by the country's multi-year licensing round and ongoing exploration and production campaigns. A $60 billion upstream investment pipeline is planned for the country in the next five years, reflecting the commitment by investors to maximize output and unlock new frontiers. In 2025, a licensing round offering ten blocks in the offshore Kwanza and Benguela basins is expected to entice further spending, thereby boosting the demand for oilfield services. AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; the National Oil, Gas and Biofuels Agency; the Petroleum Derivatives Regulatory Institute; national oil company Sonangol; and the African Energy Chamber; the event is a platform to sign deals and advance Angola's oil and gas industry. To sponsor or participate as a delegate, please contact sales@ Active in Angola since the 1980s, Oceaneering has supported various large-scale projects through services including remotely operated vehicles and remote operations, diving services, asset integrity and inspection, vessel management, as well as engineering, machining and fabrication. These services are driven by the company's multiple, state-of-the-art facilities in Luanda and Cabinda. Major contracts include transportation and installation work on the Girassol life extension project in Angola's offshore Block 17 – one of the country's legacy fields. The company was responsible for air and saturation diving services, project management, engineering and procurement activities, in support of the recovery and replacement of 12 risers. Services commenced in 2023 and will progress until late-2025. Previous contracts include by Cabinda Gulf Oil Company for works related to offshore Blocks 0 and 14 and by bp for works related to Blocks 18 and 31. As the biggest event of its kind in the country, AOG 2025 unites the entire industry – from upstream operators to oilfield service providers to technology experts, downstream players and financiers. The event takes place under the theme Angola 50 Years: Oil and Gas as a Development Driver, aligning with national goals of supporting production growth and driving long-term and impactful economic growth. Distributed by APO Group on behalf of Energy Capital&Power.
Yahoo
27-05-2025
- Business
- Yahoo
U.S. Offshore Oil Production Set To Jump
U.S. energy executives are forecasting a significant increase in offshore oil production under a potential second Trump administration, attributing this to streamlined permitting processes, sustained investments, and technological advancements. The Gulf of Mexico's output is projected to rise from 1.8 million barrels per day (bpd) to 2.4 million bpd by 2027, according to estimates from the U.S. Energy Information Administration (EIA) and the Bureau of Ocean Energy Management (BOEM). While shale oil offers flexibility, its growth is expected to plateau, prompting companies to focus more on offshore drilling. The Trump administration's commitment to expediting oil and gas project approvals on federal lands is anticipated to further bolster offshore activities. BOEM currently manages 2,227 active leases on the U.S. Outer Continental Shelf (OCS), with 469 leases producing as of 2024. In 2023, OCS leases generated over $7 billion in federal revenue and accounted for approximately 14% of total U.S. crude production. Recent BOEM assessments estimate the Gulf holds 29.59 billion barrels of oil and 54.84 trillion cubic feet of gas in technically recoverable, undiscovered fields. A 2023 update added 1.3 billion barrels of oil equivalent (boe), marking a 22.6% increase after analyzing more than 37,000 reservoirs across 1,336 fields. In addition to promising geology, deepwater drilling is benefiting from technological advances. Chevron's Anchor project, for example, recently began production at record-breaking pressures of 20,000 psi—a first for the industry and a milestone in deepwater engineering. At the same time, energy companies are deploying AI-driven tools to reduce risk, increase productivity, and optimize maintenance. Companies like BP and Devon Energy are using artificial intelligence for predictive modeling, real-time drilling performance, reservoir analysis, and cost forecasting—giving them a competitive edge in volatile price the appeal of offshore growth, the shift also reflects emerging challenges onshore. The U.S. oil and gas rig count has fallen to its lowest level since November 2021. In the Permian Basin, rig activity is down 11% year-over-year, and fracking activity is showing similar declines. This retreat has forced a strategic recalibration for many operators. Diamondback Energy recently lowered its 2025 capital budget by $400 million, now forecasting $3.4–$3.8 billion in spending. The company also announced it would drop three rigs and one full-time completion crew, revising its full-year production guidance to 857,000–900,000 boe/day, down from an earlier 883,000–909,000 boe/day. Other players, including ConocoPhillips, are also trimming capital expenditure and scaling back completion activity, citing low oil prices and margin pressures. Meanwhile, global market dynamics may complicate the U.S. supply picture. OPEC+ is considering a 411,000 bpd production increase in July, with Saudi Arabia reportedly backing the move to counterbalance repeated quota violations by members such as Kazakhstan. A production hike could suppress oil prices further if global demand fails to keep pace. Still, offshore U.S. production could fill key gaps left by a slowing shale sector. In 2024, federal offshore areas produced 668 million barrels of oil and 700 billion cubic feet of natural gas—figures that are expected to climb as new projects come online and lease activity increases. Analysts note that despite trade disputes and policy shifts, U.S. offshore oil remains globally competitive. Its high-volume, low-decline profile offers a degree of reliability that investors and buyers increasingly value. Even in the face of Chinese tariffs on U.S. LNG, American energy exports continue to expand. Ultimately, the outlook for U.S. oil production—onshore and offshore—will depend on a combination of market prices, regulatory conditions, and geopolitical risk. But for now, the message from the Gulf is clear: offshore is no longer a sideshow. It's where the next wave of U.S. oil growth may be anchored. Diamondback Energy recently lowered its 2025 capital budget by $400 million, now forecasting $3.4–$3.8 billion in spending. The company also announced it would drop three rigs and one full-time completion crew, revising its full-year production guidance to 857,000–900,000 boe/day, down from an earlier 883,000–909,000 boe/day. Other players, including ConocoPhillips, are also trimming capital expenditure and scaling back completion activity, citing low oil prices and margin pressures. Meanwhile, global market dynamics may complicate the U.S. supply picture. OPEC+ is considering a 411,000 bpd production increase in July, with Saudi Arabia reportedly backing the move to counterbalance repeated quota violations by members such as Kazakhstan. A production hike could suppress oil prices further if global demand fails to keep pace. Still, offshore U.S. production could fill key gaps left by a slowing shale sector. In 2024, federal offshore areas produced 668 million barrels of oil and 700 billion cubic feet of natural gas, and those figures are expected to climb as new projects come online and lease activity increases. Analysts note that despite trade disputes and policy shifts, U.S. offshore oil remains globally competitive. Its high-volume, low-decline profile offers a degree of reliability that investors and buyers increasingly value. Even in the face of Chinese tariffs on U.S. LNG, American energy exports continue to expand. Ultimately, the outlook for U.S. oil production (both onshore and offshore) will depend on a combination of market prices, regulatory conditions, and geopolitical risk. But for now, the message from the Gulf is clear: offshore oil has long ceased to be a sideshow. It's where the next wave of U.S. oil growth is likely to come from. By Alex Kimani for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
