Namibia flags approval concerns over TotalEnergies offshore stake purchase
(Bloomberg) – Namibia’s energy ministry said the government wasn’t notified of the planned acquisition by TotalEnergies and Petrobras of stakes in an offshore exploration license in the southern African country.
TotalEnergies agreed to buy a 42.5% operated stake in the country’s PEL 104 license from Eight Offshore Investments Holdings and Maravilla Oil & Gas, the French oil giant said in a statement on Friday. Brazil’s Petrobras took a 42.5% stake, the company reported in its own announcement. State-owned Namcor will hold a 10% stake and Eight will retain 5% under the deal.
“The Namibian Government was not notified about these developments, as required by law,” the Ministry of Industries, Mines and Energy said in a statement on Sunday, adding that it was informed of the planned press release “a few minutes prior to its release.”
TotalEnergies “always respects the laws and processes in the countries where it operates,” the company said in a statement on Sunday, reiterating that completion of the transaction remains subject to approvals from Namibian Authorities, including the prior approval of the Minister of Industries, Mines and Energy.
Read more: TotalEnergies expands Namibia exploration position with operated PEL104 stake
The ministry deferred additional questions to Namibia’s presidency.
The ministry’s account complicates the deal and raises questions about communication between government entities and oil companies in Namibia as it looks to become a significant crude producer. Since 2022, the Orange Basin has seen a series of major discoveries by TotalEnergies and Shell Plc, followed by farm-ins from companies including Chevron Corp. and BP Plc-Eni SpA venture Azule Energy.
The ministry on Sunday “noted with concern” reports of what it called the “alleged equity interests” and stressed that any transfer or acquisition of stakes in petroleum licenses in Namibia must obtain prior approval from the minister.
Namibian President Netumbo Nandi-Ndaitwah last year began moving to bring oil and gas more directly under her control.
