Windhoek: Namibia’s Ministry of Industries, Mines and Energy has sharply criticized global energy majors TotalEnergies and Petrobras, asserting that the companies failed to follow required legal procedures when acquiring major stakes in an offshore oil exploration licence. The dispute highlights growing tensions over how foreign firms operate in Namibia’s rapidly evolving oil and gas sector.
In early February, both TotalEnergies and Brazil’s Petrobras announced that they had each secured a 42.5 percent interest in the PEL104 exploration licence located in the Lüderitz Basin off Namibia’s southwest coast. The licence spans approximately 11,000 square kilometres of deep offshore territory and has attracted international attention due to its potential hydrocarbon resources.
However, the Namibian government said it was only informed moments before the public disclosure of the transaction and that prior approval from the energy ministry is required under Namibian petroleum law before any transfer or acquisition of licence interests can be concluded. In a statement released on Sunday, the ministry described the companies’ actions as a breach of domestic rules and called for compliance with legal and regulatory frameworks designed to protect national interests.
Namibia has been positioning itself as one of Africa’s emerging oil frontiers, drawing significant investor interest following recent discoveries and exploration successes. The country’s regulatory system, however, is in the midst of reform as authorities work to modernize governance, increase transparency and assert stronger oversight over offshore oil licences. A proposed Petroleum (Exploration and Production) Amendment Bill aimed at streamlining approvals and establishing a new regulatory authority under the president’s office was recently returned for revisions, underscoring the evolving nature of the sector’s legal environment.
The contested PEL104 licence was acquired through agreements with Maravilla Oil & Gas and Eight Offshore Investments Holdings, previous holders of the interests now taken by TotalEnergies and Petrobras. Once fully approved, the new ownership structure envisages TotalEnergies holding the operated stake alongside Petrobras and local partner Namcor, the state-owned energy company.
TotalEnergies has in recent years been expanding its footprint in Namibia, following earlier acquisitions including a 40 percent stake in another offshore block that hosts the Mopane discovery. Petrobras, meanwhile, said its entry into Namibia aligns with its 2026–2030 strategic plan to diversify reserves and strengthen its global exploration portfolio outside Brazil, particularly in frontier basins with promising geology.
The government’s criticism underscores the importance Windhoek places on procedural integrity even as it welcomes foreign investment. Officials argue that adherence to established approval processes is crucial for ensuring that the benefits of natural resource development flow equitably to the Namibian people, and that due oversight is maintained over strategic assets.
Analysts say how the dispute is resolved could set a precedent for future foreign participation in Namibia’s energy sector. Strict enforcement of regulatory requirements may reassure local stakeholders but could also introduce delays or new conditions for international companies seeking to deepen their involvement in the country’s oil and gas industry.
As the situation develops, TotalEnergies and Petrobras have so far not issued detailed public responses addressing the procedural concerns raised by Namibian authorities. The finalization of the licence transfer still depends on customary regulatory approvals, joint venture consents, and adherence to national legal requirements before operations can fully proceed.