The Namibian government has stated that it does not recognize an asset acquisition deal involving TotalEnergies and Petrobras, saying the transaction did not follow the required procedures, according to Oilprice.com citing a Reuters report.
According to the Ministry of Industries, Mines and Energy, the two companies failed to notify the government of their intention to acquire 42.5% each in the PEL104 offshore license and therefore did not obtain the mandatory formal approval.
“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 ministry said in a statement on Sunday.
TotalEnergies announced on Friday that it had signed agreements to acquire a 42.5% operated interest in the PEL104 exploration license offshore Namibia from Eight Offshore Investments Holdings and Maravilla Oil & Gas.
Upon completion of the transaction—pending government approval—TotalEnergies will become the operator of the license, located north of the PEL 83 block, where the giant Mopane discovery was made.
The French supermajor would hold a 42.5% interest alongside Petrobras (42.5%), Namcor (10%), and Eight (5%).
Earlier, TotalEnergies completed a stake-swap deal with Portugal’s Galp under which the French company would receive a 40% operating stake in the block containing the Mopane discovery—one of the most promising recent finds—while Galp would receive 10% in the block housing the Venus discovery and 9.39% in a third block, PEL91.
Namibia hopes to mirror the rapid oil boom seen in Guyana, but the country currently lacks the infrastructure to fast-track development of major discoveries, making them more costly and complex to commercialise.
Nevertheless, the oil industry appears prepared to invest heavily to secure future production and replace declining output from aging fields.
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