The Namibian government has rejected an asset acquisition involving TotalEnergies and Petrobras, stating that the companies failed to follow required approval procedures.
In a statement issued Sunday, Namibia’s Ministry of Industries, Mines and Energy said the two firms did not formally notify the government of their plan to acquire 42.5 per cent each in Petroleum Exploration Licence 104 (PEL104), located offshore. As a result, the ministry said the transaction lacks the mandatory ministerial approval.
The ministry stressed that, under Namibian law, any transfer or acquisition of participating interests in petroleum licences must receive prior consent from the minister responsible for the sector.
Deal Structure and Ownership Plan
TotalEnergies announced on Friday that it had signed agreements to purchase a 42.5 per cent operated stake in PEL104 from Eight Offshore Investments Holdings and Maravilla Oil & Gas.
If authorities approve the deal, TotalEnergies would operate the block. The proposed ownership structure would see TotalEnergies and Petrobras each hold 42.5 percent, while Namibia’s state oil company, Namcor, would retain 10 percent, and Eight Offshore would hold 5 percent.
The licence area lies north of PEL83, which hosts the significant Mopane discovery.
Separately, TotalEnergies recently concluded a stake swap arrangement with Portugal’s Galp. Under that agreement, TotalEnergies secured a 40 per cent operated interest in the block containing the Mopane discovery. In return, Galp received a 10 percent stake in the Venus discovery block and 9.39 percent in another license area, PEL91.
Namibia’s Emerging Oil Ambitions
Namibia aims to position itself as a major new oil producer, drawing comparisons with Guyana’s rapid offshore development. However, the country still faces infrastructure gaps that could slow project execution and raise development costs.
Despite these challenges, international energy companies continue to expand their footprint in Namibia’s offshore basins. Many view the recent discoveries as commercially attractive and strategically important, particularly as global producers seek to offset declining output from mature fields.
For now, the future of the PEL104 transaction depends on whether the companies regularise the approval process in line with Namibian petroleum laws.