• Authorities say no formal application was filed before the announcement
• Transaction requires prior regulatory approval to be recognized
• Decision comes as Namibia tightens oil sector regulation

Namibia has suspended recognition of TotalEnergies’ acquisition of a stake in the offshore exploration license PEL104, citing the absence of a formal application and prior approval by the relevant authorities.

TotalEnergies and Petrobras had announced that each had acquired a 42.5% interest in the offshore PEL104 license, located in the Lüderitz Basin off the country’s southwest coast. The stakes were purchased from Maravilla Oil and Gas and Eight Offshore Investments Holdings.

The license covers an area of about 11,000 square kilometers, and TotalEnergies is expected to become the operator. Completion of the transaction was subject to regulatory approvals and partner consent. Once finalized, the consortium would include TotalEnergies (42.5%), Petrobras (42.5%), the national oil company Namcor (10%), and Eight Offshore Investments Holdings (5%).

Windhoek reasserts approval process

Namibian authorities said in a statement on Sunday, February 8, that they had not been notified of the transaction in line with legal requirements. The Ministry of Industries, Mines and Energy said it learned of the announcement only minutes before it was made public.

The presidency said no transaction can be considered valid until a formal application has been submitted and reviewed under statutory procedures. The government stressed that any transfer or acquisition of an interest in a petroleum license requires prior authorization from the competent minister.

The stance comes as Namibia undertakes a major reform of its energy sector. The country is seeking to achieve its first commercial oil production while strengthening its regulatory framework. Energy Minister Modestus Amutse has presented a bill amending oil exploration and production legislation, including the creation of an upstream regulatory unit under the authority of the presidency.

The reform aims to modernize the legal framework, strengthen fiscal transparency, and expand rules on conflicts of interest. New local content requirements are also included.

The refusal to recognize the PEL104 transaction reflects the authorities’ determination to strictly enforce existing law. The continuation of the PEL104 project will now depend on compliance with procedures set out in the new legislation, making the case a test for the application of Namibia’s future regulatory framework for the oil sector.

The transaction is part of TotalEnergies’ broader strategy in Namibia. In December 2025, the group became operator of the offshore PEL83 license in the Orange Basin following an agreement with Portugal’s Galp. That deal предусматриes a rebalancing of stakes across several offshore licenses.

In late January, executives from TotalEnergies and Galp were received in Windhoek by President Netumbo Nandi-Ndaitwah, where they presented progress on their projects without announcing new investment decisions.

According to Wood Mackenzie, Namibia’s oil production could exceed 500,000 barrels per day within ten years, driven by discoveries in the Orange Basin. Development would require about $4 billion in annual investment at the start of the next decade.

Olivier de Souza