WINDHOEK, Feb 8 (Reuters) – Namibia is concerned that TotalEnergies and Petrobras had acquired new offshore positions in the Luderitz Basin without informing the energy ministry or getting the necessary approval, it said in a statement on Sunday.
French oil major TotalEnergies and Brazil’s Petrobras said on Friday they had each acquired a 42.5% stake in an exploration licence offshore Namibia, as both firms look to develop oil in one of the world’s last exploration frontiers.
The acquisition of the stakes in the PEL104 licence was from Maravilla Oil and Gas and Eight Offshore Investments Holdings. The two majors have had partnerships in oil assets in Brazil for more than a decade.
The latest acquisition marks an expansion of Total’s holdings in the southern African country, where it hopes to be the first to produce oil by the end of the decade.
MINISTRY CALLS FOR PRIOR APPROVAL
In Sunday’s statement, the Ministry of Industries, Mines and Energy said it was not notified of the developments, as required by law, and was told about the planned announcement of the deal “a few minutes” before its release.
“The government makes it clear that in accordance with the law, any transfer, assignment, or acquisition of participating interests in petroleum licenses in Namibia must obtain prior approval of the minister,” the statement said.
It was unclear what the statement means for the transaction and whether the government will allow it to continue. TotalEnergies and Petrobras did not immediately respond for comment out of regular business hours.
Members of the government’s proposed Upstream Petroleum Unit did not respond, nor did the Petroleum Commissioner, Maggy Shino.
Sunday’s statement comes as Namibia, a global exploration hotspot, aims for first oil while introducing far-reaching regulatory changes affecting the energy sector.
Besides new rules on local content, the recently installed energy minister, Modestus Amutse, introduced the Petroleum (Exploration and Production) Amendment Bill last week that will establish the Upstream Petroleum Unit as a new regulatory authority, in the office of the president.
The bill, which was sent back in December after criticism by opposition parties, seeks to modernize the sector’s legal framework, expands conflict-of-interest provisions for staff and strengthens fiscal transparency, among others.
It also does away with the position of Petroleum Commissioner.
(Reporting by Nyasha Nyaungwa and Wendell Roelf; Editing by David Holmes)