African state disputes French oil giant’s offshore deal

TotalEnergies failed to notify the Namibian government in advance of the planned agreement, the country’s energy ministry has said

Namibia has pushed back against an offshore deal between French oil giant TotalEnergies and Brazil’s Petrobras, saying the companies did not secure required government approval before announcing the transaction.

TotalEnergies announced on Friday that it has signed agreements to acquire a 42.5% operated interest in the PEL104 exploration license from Eight Offshore Investments Holdings and Maravilla Oil and Gas.

Petrobras will hold a 42.5% stake, Eight will retain 5%, and Namibia’s state-owned Namcor will hold 10% under the deal, the French company said in a statement.

The southern African country’s Energy Ministry responded on Sunday, declaring that the government “was not notified about these developments, as required by law.”

“The government makes clear that in accordance with the law, any transfer, assignment, or acquisition of participating interests in petroleum licences in Namibia must obtain prior approval of the minister,” the ministry said.

READ MORE: African state revokes approval for TotalEnergies asset sale

In response, TotalEnergies said completion of the transaction remains subject to approvals from Namibian authorities, adding that it “always respects the laws and processes in the countries where it operates.” 

Namibia has emerged as one of the world’s most closely watched new oil and gas frontiers following major discoveries in the Orange Basin in 2022 and 2023. The government has since tightened oversight of the sector as it seeks to launch its first oil production.

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TotalEnergies has been present in Namibia since 1964 and holds interests in multiple offshore exploration licenses in the Orange Basin, including blocks tied to the Venus discovery.

The company has faced controversy over both new projects and divestments in Africa in recent years. Last September, Nigeria’s upstream regulator revoked approval for a planned TotalEnergies asset sale in an onshore oil project, citing alleged failure by the parties to meet financial commitments required to complete the deal.

The energy firm has been criticized by communities and activists over spills and environmental issues in Nigeria. Its operations in East Africa have also faced criticism. Activists have pursued legal action alleging that the projects adversely affected land rights for about 118,000 people in Uganda and Tanzania, and that many remain without compensation.