The Namibian Ministry of Mines and Energy has expressed official concern regarding a farm-in deal involving oil majors TotalEnergies and Petrobras for an offshore exploration licence, citing a failure by the companies to provide proper prior notification as mandated by law.

Details of the Transaction

On February 6, TotalEnergies and Petrobras announced an agreement to each acquire a 42.5% participating interest in Petroleum Exploration Licence 104 (PEL 104) from existing holders Eight Offshore Investments Holdings and Maravilla Oil & Gas. This licence is located in the frontier Luderitz basin.

Government's Position and Legal Requirements

In a statement dated February 9, the ministry, under Minister Modestus Amutse, clarified that the Namibian government was not formally notified of these developments as required. The ministry stated it was informed of the planned press release only minutes before its publication. The statement stressed that any transfer, assignment, or acquisition of interests in petroleum licenses legally requires the prior approval of the minister.

Company Response and Context

When asked for comment, a TotalEnergies spokesperson stated the company always respects local laws and processes, noting that completion of the PEL 104 transaction remains subject to customary approvals from Namibian authorities, including the minister's prior approval—a condition also mentioned in TotalEnergies' original announcement. Market observers familiar with Namibia suggested the minister's primary dissatisfaction stemmed from the lack of adequate advance notice before the deal was made public.