Namibia's Energy Ministry blasts TotalEnergies and Petrobras for failing to follow procedure

Namibia expressed concern that TotalEnergies and Petrobras acquired new offshore positions within the Luderitz basin without notifying the energy ministry and/or obtaining the necessary approval.

Both French and Brazilian oil companies, TotalEnergies & Petrobras, announced on Friday that they each acquired a 42.5% share in an offshore Namibia exploration license. The firms are looking to develop oil at one of the last frontiers in exploration.

Maravilla Oil and Gas and Eight Offshore Investments Holdings acquired the stakes of the PEL104 license. Both majors have been 'partners' in Brazil oil assets for over a decade.

Total has expanded its holdings in southern Africa, where it hopes that it will be the first oil producer by the end of this decade.

Calls from the Ministry for Prior Approval

The statement released on Sunday said that the Ministry of Industries, Mines and Energy was not informed of developments as required by law, and had been told "a few moments" before the announcement of the deal.

The statement stated that "the government makes it clear to all parties involved in the transfer, assignment or acquisition of petroleum licenses, in Namibia, must have the prior approval of Minister,"

The statement is not clear as to what it means and whether or not the government will allow the transaction to proceed. TotalEnergies and Petrobras didn't immediately respond to a request for comment outside of normal business hours.

Maggy Shino, the Petroleum Commissioner and members of the proposed government Upstream?Petroleum unit, did not respond.

Namibia, which is a "global exploration hotspot", plans to produce its first oil and introduces regulatory changes that will affect the energy sector.

Modestus Amtse, the newly appointed energy minister, presented the Petroleum (Exploration &?Production Amendment Bill) last week. This bill will create the Upstream Petroleum Unit, which is a new regulatory body, under the presidency.

The bill was sent back to the opposition in December following criticism. It seeks, among other things, to modernize and expand conflict-of interest provisions for employees, as well as strengthen fiscal transparency.

The position of Petroleum Commissioner is also abolished. (Reporting and editing by David Holmes, Wendell Roelf and Nyasha Nyaungwa)

(source: Reuters)