Namibia has declared that it will not recognize the recent offshore stake purchases in the Luderitz Basin by TotalEnergies and Petrobras until the appropriate approval procedures are completed. This statement, made by government authorities on Sunday, emphasizes the necessity of following legal steps before any transactions can be acknowledged as valid. Jonas Mbambo, the spokesperson for the Presidency, stated that formal requests must be submitted and that the outlined legal processes need to be fulfilled for recognition of the deal to take place.

The acquisition in question, announced last Friday, involves both companies acquiring a 42.5% stake each in the exploration license PEL104 located off the Namibian coast. This move is part of a broader strategy by both TotalEnergies, a French oil giant, and Petrobras, a Brazilian state-controlled oil company, to tap into what is considered one of the last remaining frontiers for oil exploration. The deal is seen as a significant expansion of Total's presence in Namibia, where the company aspires to lead the way in oil production.

However, the Namibian government's stance indicates a push for transparency and adherence to national laws in the energy sector. As Namibia continues to navigate its growing oil industry, the government's caution reflects its desire to ensure that foreign investments comply with local regulations and benefit the country properly. This situation poses implications for future investment from international oil companies in Namibia, as it underscores the need for them to engage in thorough legal and procedural compliance to operate within the country.