Namibia has contested a deal between TotalEnergies and Petrobras, arguing that necessary governmental approvals were not obtained prior to the agreement's announcement.
Namibia has raised concerns over an offshore oil deal between the French company TotalEnergies and Brazil's Petrobras. The agreement pertains to the PEL104 exploration license, in which TotalEnergies announced it would acquire a 42.5% operated interest. Petrobras is set to hold a matching stake, while Namibia’s state-owned Namcor is allocated a 10% share. This transaction was made public on a Friday, drawing immediate attention and subsequent backlash from the Namibian government.
In a statement released on Sunday, Namibia’s Energy Ministry clarified that the government had not received the required notification regarding the deal, which raises legal issues surrounding the transfer of petroleum interests in the country. According to Namibian law, any such transfers must receive prior approval from the minister, and the government emphasized that this protocol was not followed. The lack of notification is particularly significant as it sheds light on the compliance standards expected of international oil companies operating within Namibian territory.
The implications of this dispute are considerable, as it not only highlights the regulatory environment for foreign investment in Namibia but also questions the strategies of multinational corporations when dealing with governmental entities. Should Namibia pursue legal action or refuse to acknowledge the deal, TotalEnergies and Petrobras may face delays or disruptions to their operational plans in the region, potentially impacting future exploration or drilling activities.
