TotalEnergies Says Its Namibian Oil Decision Cannot Wait
The company says engineering is finished and contractor tenders will not stay valid indefinitely, putting pressure on talks with the Namibian government. The post TotalEnergies Says Its Namibian Oil Decision Cannot Wait appeared first on The Rio Times .
TotalEnergies asserts that a final investment decision for its Venus oil project in Namibia must be made before 2027, warning that the relevant tenders will expire if no decision is made in time. The engineering work on the field development plan is complete, according to the company, which emphasizes that the project is technically ready.
However, contractor tenders for vessels and subsea work have validity periods, and extending them comes with additional costs. Wood Mackenzie's analysis presented at a Windhoek conference suggested that the decision might be delayed to 2027, which TotalEnergies finds disappointing. Discussions with the Namibian government have been ongoing for several months, with the intention to conclude by the end of July.
TotalEnergies' joint venture and development director, Carlos Menezes, highlighted the urgency of the matter, stating that "the time is now. This is not an open-ended window." The negotiations involve fiscal terms, local content requirements, and state participation, but no specific details were provided. The company has not disclosed the fiscal terms, reserve figures, production rate, or first-oil date.
TotalEnergies' chief executive, Patrick Pouyanne, had previously stated that the consortium and the Namibian government aimed to finalize discussions by the end of July, but this deadline has passed without an agreement. The Orange Basin discoveries have transformed Namibia into a closely watched exploration story in the Atlantic, and a producing oil industry would significantly reshape the country's economy.
Namibia seeks a cautious approach to managing resource wealth, while TotalEnergies prioritizes speed in decision-making.
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