The country’s ambition to become one of Africa’s next major oil producers has hit a snag, after the government reminded industry stakeholders that all deals involving Namibian petroleum licence interests must be approved by the Minister of Industries, Mines and Energy.
In a statement issued on Sunday, the ministry noted it was only informed of a deal between TotalEnergies and Brazil’s state-owned oil company, Petrobras, “a few minutes prior” to a media release announcing the deal.
The ministry raised red flags about the recent announcement by the two energy giants regarding changes to ownership of Petroleum Exploration Licence 104 (PEL 104) in the Orange Basin, offshore Namibia.
According to the ministry, the announcement came as a surprise as government officials said they were neither formally consulted nor notified in advance, despite clear legal requirements that any transfer or acquisition of interests in petroleum licences must receive prior ministerial approval.
Meanwhile, the government has since stressed that, under Namibian law, any resource-related transactions cannot be considered valid without the explicit approval of the Minister of Industries, Mines and Energy.
Addressing the issue at hand, the ministry struck a firm tone, clarifying that corporate announcements do not override national legislation. The ministry thus reaffirmed its commitment to regulatory compliance, transparency, and the responsible development of Namibia’s petroleum resources, which are principles it stated are non-negotiable as the country’s oil sector begins to take shape.
Oil deal
The contentious deal emanated from Petrobras confirming it has acquired a 42.5% stake in a Namibian offshore block, alongside TotalEnergies, which holds an equal share and will operate the asset. The exploration arm of Namibia’s national oil company, Namcor Exploration and Production, retains a 10% interest. While the deal’s financial value has not been disclosed, Petrobras has described the acquisition as strategically important.
“This acquisition marks Petrobras’ return to Namibia and is aligned with the company’s long-term strategy,” the Brazilian company stated, noting that the deal fits squarely within its 2026 to 2030 business plan.
Petrobras chief executive officer Magda Chambriard had previously indicated that Africa will be the company’s main growth region outside Brazil, with Namibia, Angola, and Nigeria firmly on its radar. This strategic shift by Petrobras reflects a clear shift under Brazilian president Luiz Inácio Lula da Silva, reversing earlier policies that had seen Petrobras pull back from Africa to focus on Brazil’s pre-salt oil fields.
Moreover, as international interest in Namibia’s offshore potential continues to grow, greater clarity is needed regarding the country’s regulatory framework.
Legal framework
Energy, oil, and gas lawyer, Shakwa Nyambe, managing partner at SNC Incorporated, has urged Parliament to move quickly on the Petroleum (Exploration and Production) Amendment Bill.
“With multiple multi-billion-dollar projects on the horizon, Namibia cannot afford the costs of delay or indecision,” Nyambe stated.
He believes passing the amendments would send a strong message to global investors that Namibia is ready to manage its oil resources responsibly and with long-term vision and utmost transparency.
Nyambe cautioned that prolonged uncertainty could delay the Final Investment Decision (FID) on TotalEnergies’ massive Venus discovery. Oil companies, he noted, are unlikely to commit billions of dollars while key legislation governing their operations remains unresolved.
The situation highlights the tightrope Namibia is walking as it navigates its emerging oil boom. While the country is eager to attract investment and unlock economic benefits, authorities are clear that compliance with local laws comes first.
As Namibia stands on the brink of its potentially transformative oil development, how well regulatory clarity, political decisiveness and investor confidence can be aligned will determine how quickly, or cautiously, this burgeoning energy frontier advances.
Last year, President Netumbo Nandi-Ndaitwah moved the management of Namibia’s oil and gas sector from the Ministry of Mines and Energy directly under the Office of the President. This was done to maximise national benefits and ensure strict oversight through the Upstream Petroleum which was established within the Presidency to oversee licensing, regulation, and compliance.