Namibia Challenges TotalEnergies–Petrobras Offshore Deal - 1wk ago

Namibia’s government has sharply criticised an offshore exploration deal between French energy major TotalEnergies and Brazil’s Petrobras, insisting it was never formally notified of the transaction despite legal requirements that any licence transfer receive prior ministerial approval.

The dispute centres on Petroleum Exploration Licence 56 in the Luderitz Basin, a vast offshore area in Namibia’s southern waters covering roughly 11,000 square kilometres. TotalEnergies announced that it had entered into an agreement with Petrobras for a farm-in to the licence, with both companies set to hold significant participating interests alongside Namibia’s state-owned oil company, Namcor, which would retain a 10 percent stake.

According to statements from Namibia’s Ministry of Mines and Energy, no application for the transfer of interests in the licence had been submitted to the minister, as required under the country’s petroleum legislation. Officials stressed that any change in ownership or operatorship of an exploration licence is subject to a formal approval process designed to safeguard national interests and ensure transparency.

The ministry warned that, in the absence of such approval, any purported transaction has no legal effect in Namibia. It called on the companies involved to follow established procedures before making public announcements about changes in licence ownership. The government also signalled it would review the matter to determine whether further action is necessary.

The Luderitz Basin lies south of the Orange Basin, where a series of major offshore oil discoveries by TotalEnergies and Shell has transformed Namibia into one of the most closely watched new frontiers in global exploration. Those finds have raised expectations that Namibia could become a significant oil producer, while also intensifying scrutiny of how the state manages its resources.

Analysts say the clash over the Luderitz licence underscores Namibia’s determination to assert regulatory control as international companies rush to secure acreage. The government has repeatedly stated that it welcomes foreign investment but will insist on compliance with local laws, including rules on licence transfers, local participation and environmental oversight.

For TotalEnergies and Petrobras, the episode highlights the growing complexity of operating in emerging hydrocarbon provinces where legal frameworks are being tested by rapid exploration activity. For Namibia, it is a reminder that the promise of offshore oil wealth comes with heightened expectations for governance, transparency and respect for national sovereignty.

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