Namibia will not acknowledge the agreement between TotalEnergies and Petrobras as it did not adhere to the proper procedures
Namibia will not acknowledge the acquisition of offshore stakes in the Luderitz Basin, as announced last week by TotalEnergies and Petrobras, until the oil companies adhere to the appropriate approval process, government officials stated on Sunday.
Jonas Mbambo, a spokesperson for the presidency, stated that “no transaction can be recognised or considered valid” until a formal application is submitted and the required statutory process is completed.
On Friday, French oil major TotalEnergies and Brazil’s Petrobras announced that they had each secured a 42.5% stake in the PEL104 exploration licence located offshore Namibia, as both companies aim to explore oil in one of the remaining frontiers of exploration worldwide.
The acquisition from Maravilla Oil and Gas and Eight Offshore Investments Holdings signifies an expansion of Total’s interests in the southern African nation, where it aims to be the first to commence oil production by the decade’s end.
MINISTRY REQUESTS PRIOR APPROVAL
On Sunday, the Ministry of Industries, Mines and Energy issued a statement indicating that it had not been informed of the developments as mandated by law, and was only made aware of the planned announcement regarding the deal “a few minutes” prior to its release. “The government emphasizes that, in accordance with the law, any transfer, assignment, or acquisition of participating interests in petroleum licenses in Namibia requires prior approval from the minister,” the statement noted.
TotalEnergies stated that the transaction is still contingent upon approvals from the Namibian authorities, which includes prior consent from the energy minister.
Petrobras, having collaborated with TotalEnergies on oil assets in Brazil for over ten years, stated that the agreement is still pending local approval and will “proceed in accordance with Namibian law and regulatory requirements.”
UPDATED REGULATIONS FOR THE ENERGY INDUSTRY
There was no response from members of the government’s proposed Upstream Petroleum Unit, nor from the Petroleum Commissioner, Maggy Shino.
Sunday’s statement arrives as Namibia, a prominent exploration destination, seeks to initiate its first oil production while implementing significant regulatory changes that impact the energy sector.
In addition to new regulations regarding local content, the newly appointed energy minister, Modestus Amutse, presented the Petroleum (Exploration and Production) Amendment Bill last week. This bill aims to create the Upstream Petroleum Unit as a new regulatory authority within the office of the president.
The bill, returned in December following opposition criticism, aims to update the sector’s legal framework, broaden conflict-of-interest provisions for staff, and enhance fiscal transparency, among other initiatives.
The position of Petroleum Commissioner is also eliminated.
