TotalEnergies notes respect for laws after Namibia rebukes oil deal

TotalEnergies said Feb. 9 that it respects the "laws and processes" of its host countries, after Namibia said it would not recognize a recent offshore exploration deal signed by the French supermajor due to procedural deficiencies.

In a statement to Platts, part of S&P Global Energy, TotalEnergies said it "always respects the laws and processes in the countries where it operates."

The company added: "Completion of the transaction remains subject to customary approvals from the Namibian Authorities, including the prior approval of the Minister of Industries, Mines and Energy."

The company's response follows a statement released by Namibia's energy ministry over the weekend saying it was not notified of TotalEnergies' planned acquisition of a stake in the PEL 104 exploration license -- located in the Luderitz Basin -- until just "a few minutes" before it was announced.

"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.

On Feb. 6, the French company and Brazil's state-run Petrobras said they were each acquiring 42.5% interests in PEL 104, in a deal with stakeholders Maravilla Oil and Gas and Eight Offshore Investments. Namibia's state oil company, Namcor, would retain 10% and Eight would continue to hold 5%.

The Luderitz basin, to the north of major Orange Basin discoveries, is the least explored of Namibia's offshore oil provinces.

TotalEnergies would operate the block, it said, marking the latest addition to its growing Namibia portfolio.

The company operates the Venus discovery -- which in 2022 put Namibia's fledgling oil sector on the global exploration map -- and recently farmed into Galp's massive Mopane oil and gas find. Both of those discoveries lie in the Orange Basin.

In its statement on Feb. 6, TotalEnergies said the transaction's completion is "subject to customary third-party approvals from the Namibian authorities and joint venture partners."

Petrobras also noted that the acquisition of its stake in the 11,000 sq km frontier license "is conditional on the fulfillment of conditions precedent, including applicable government and regulatory approvals, notably from the Namibian Ministry of Industry, Mines and Energy."

First oil

Namibian officials are attempting to drive the country toward first oil by around 2030 and estimate it holds over 11 billion barrels of oil equivalent.

However, concerns over porosity, a high gas-to-oil ratio and extreme water depths have given some companies pause, while a major Shell write-down and a Chevron dry well in 2025 took some of the sheen off the emerging sector.

Namibia's oil ministry did not respond to a request for comment on Feb. 9.

The country is understood to hold significant reserves of light sweet crude, meaning it could eventually compete with the likes of Nigeria's Bonny Light grade.