Namibia Declines to Recognise TotalEnergies, Petrobras Offshore Deal

WINDHOEK, Feb 9 – Namibia said it will not recognise the offshore stake acquisition announced by TotalEnergies and Petroleo Brasileiro SA until the companies complete the country’s formal approval process, government officials said.

Speaking on behalf of the presidency, Jonas Mbambo said the required process has not yet been followed as no transaction involving petroleum licenses can be considered valid unless a formal application is submitted and statutory procedures are completed.

In a separate statement, the Ministry of Industries, Mines and Energy said it was not notified of the transaction as required under Namibian law. The ministry said it was informed of the planned public announcement only minutes before it was released, adding that any transfer, assignment, or acquisition of interests in petroleum licenses must receive prior approval from the energy minister.

However, both TotalEnergies and Petrobras said the transaction remains subject to approvals from Namibian authorities, including ministerial consent and Namibian regulatory requirements.

The companies announced last week that they had agreed to acquire interests in the PEL 104 offshore exploration license in the Luderitz Basin. Under the terms disclosed, TotalEnergies and Petrobras would each hold a 42.5% stake. Namibia’s state oil company, Namcor, would retain 10%, while Eight Offshore Investments Holdings would keep 5%.

The response from the government comes as Namibia intensifies oversight of its fast-growing upstream sector. Since 2022, offshore discoveries in the Orange Basin have attracted global oil companies and raised expectations of first commercial production.

In parallel, the government is advancing regulatory changes. The energy minister last week introduced amendments to the Petroleum Exploration and Production law, including the creation of an Upstream Petroleum Unit under the office of the president, aimed at centralising oversight as exploration activity expands.