Namibia will not recognise the purchase of offshore stakes in the Luderitz Basin announced last week by TotalEnergies and Petrobras until the companies follow the legally required approval process, government officials said on Sunday, according to Reuters.
Jonas Mbambo, a spokesperson for the presidency, said that until a formal application is submitted and the statutory process is completed, “no transaction can be recognised or considered valid”.
French oil major TotalEnergies and Brazil’s Petrobras said on Friday that they had each acquired a 42.5% stake in the PEL104 exploration licence offshore Namibia, as they seek to develop oil resources in one of the world’s last major exploration frontiers.
The stakes were acquired from Maravilla Oil and Gas and Eight Offshore Investments Holdings. The deal would expand TotalEnergies’ presence in Namibia, where the company hopes to be the first to produce oil by the end of the decade.
In a statement issued on Sunday, Namibia’s Ministry of Industries, Mines and Energy said it was not informed of the transaction in advance, as required by law, and was notified of the planned public announcement only “a few minutes” before it was released.
“The government makes it clear that in accordance with the law, any transfer, assignment, or acquisition of participating interests in petroleum licenses in Namibia must obtain prior approval of the minister,” the statement said.
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TotalEnergies said the transaction remains subject to approvals from Namibian authorities, including prior approval by the energy minister.
Petrobras, which has partnered with TotalEnergies in Brazilian oil assets for more than a decade, also said the deal is subject to local approval and will “proceed in accordance with Namibian law and regulatory requirements”.
Members of the government’s proposed Upstream Petroleum Unit did not respond to requests for comment, and neither did Petroleum Commissioner Maggy Shino.
The government’s statement comes as Namibia, now seen as a global oil exploration hotspot, works toward first oil production while rolling out significant regulatory changes in the energy sector.
Alongside new local content rules, Namibia’s recently appointed energy minister, Modestus Amutse, introduced the Petroleum (Exploration and Production) Amendment Bill last week.
The bill proposes the creation of an Upstream Petroleum Unit within the office of the president as a new regulatory authority.
The legislation, which was returned in December after opposition criticism, aims to modernize the legal framework for the sector, broaden conflict-of-interest provisions for staff, and strengthen fiscal transparency. It also removes the position of Petroleum Commissioner.
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Image Credit: Reuters
