TotalEnergies says it will not proceed with the development of its multibillion-dollar Venus oil discovery in Namibia’s Orange Basin until it has a clear agreement with the Namibian government.
Speaking during the company’s second-quarter earnings call, TotalEnergies CEO Patrick Pouyanné said a final investment decision would only follow once there is a shared understanding with Namibian authorities.
“You’re dealing with a country that is new to the oil industry, so alignment and mutual understanding are crucial,” Pouyanné said.
“I want to avoid a situation where a dispute arises later because the Namibian authorities feel they weren’t fully informed or didn’t fully understand the project. It’s better to take the time at the beginning to ensure everything is clear.”
The Namibian government is targeting first oil production by the end of 2029. To meet that deadline, key decisions must be made before the end of 2025.
“That means we need to make key decisions this year, by the end of 2025, if we want to meet that target,” Pouyanné said. “We’ve explained that to them, and now we’re doing the work. We are progressing, though I can’t share more details at this point.”
He said that while Namibia is politically stable, its oil and gas regulatory framework is still developing. TotalEnergies wants a clear and shared vision with government, regulators and investors regarding the project’s scope, fiscal terms and local participation.
Pouyanné said this dialogue must lay a solid foundation to avoid future disputes and ensure a stable investment environment.
“On our side, we are ready. It’s a matter we are actively working on. But again, I think we need to proceed carefully – it’s a bit like the situation in Mozambique,” he said.
In April, Pouyanné paid a courtesy visit to President Netumbo Nandi-Ndaitwah in Windhoek, reaffirming TotalEnergies’ interest in exploring and potentially investing in Namibia’s growing oil sector.
The company is also considering other prospects. Pouyanné hinted at possible interest in a farm-in for Galp’s Mopane discovery.
“As for the opportunity next door, it’s still a bit distant. We’ll see what happens. In this business, that’s how things begin. I’ve let the company continue working on it,” he said.
This comes as the Namibian government, through the Upstream Petroleum Unit in the Presidency, previously told Namibia Mining & Energy it has not offered TotalEnergies any incentives for the Venus development. According to the unit, engagements between the government and the company on this matter are yet to begin.
