Namibia’s energy ministry has revealed it was not properly notified of a major offshore stake acquisition involving TotalEnergies and Petrobras, raising serious questions about communication protocols between government entities and international oil companies as the southern African nation positions itself to become a significant crude producer.
TotalEnergies announced on Friday that it had agreed to purchase a 42.5% operated stake in Namibia’s PEL 104 license from Eight Offshore Investments Holdings and Maravilla Oil & Gas. In a simultaneous announcement, Brazil’s state-owned Petrobras disclosed it had acquired a 42.5% stake in the same license. State-owned Namcor will hold a 10% stake while Eight will retain 5% under the deal structure.
However, the Ministry of Industries, Mines and Energy issued a pointed statement on Sunday indicating the Namibian Government was not notified about these developments as required by law. The ministry stated it was informed of the planned press release only a few minutes prior to its public release, catching officials off guard.
TotalEnergies responded to the ministry’s concerns by reiterating that the company always respects the laws and processes in countries where it operates. The French oil giant emphasized that completion of the transaction remains subject to approvals from Namibian authorities, including prior approval from the Minister of Industries, Mines and Energy.
The ministry deferred additional questions to Namibia’s presidency, signaling the sensitivity of the matter at the highest levels of government. The ministry’s public statement complicates the deal and raises questions about communication between government entities and oil companies in Namibia as the country seeks to capitalize on recent major discoveries.
Since 2022, the Orange Basin has witnessed a series of significant discoveries by TotalEnergies and Shell, followed by farm-ins from major companies including Chevron and the BP-Eni joint venture Azule Energy. These discoveries have positioned Namibia as an emerging hotspot for offshore oil development.
The ministry noted with concern reports of what it called the alleged equity interests and stressed that any transfer or acquisition of stakes in petroleum licenses in Namibia must obtain prior approval from the minister. Namibian President Netumbo Nandi-Ndaitwah began moving last year to bring oil and gas more directly under presidential control, adding another layer of complexity to the regulatory landscape.
Sources: worldoil.com, Bloomberg