Petrobras-TotalEnergies Deal Remains Unrecognized by Namibia

Core Insights - Namibia will not recognize the offshore stake acquisition by Petrobras and TotalEnergies until compliance with the country's statutory approval process is achieved [1][2] - The acquisition involves a 42.5% stake in the PEL104 exploration license in the offshore Luderitz Basin, with TotalEnergies set to operate the asset [3] - Petrobras aims to expand its exploration activities in Africa, marking a strategic return to Namibia as part of its 2026–2030 business plan [4][5] Regulatory Concerns - Namibia's Ministry of Industries, Mines and Energy stated that it was not properly notified of the transaction, which is required by law [6] - The ministry emphasized that prior approval from the energy minister is necessary for any transfer or acquisition of petroleum licenses to be legally valid [6] - Both companies acknowledged that the transaction is subject to regulatory approvals and will proceed in accordance with Namibian law [7] Industry Context - The government's response is occurring amid significant regulatory reforms in Namibia's energy sector, including the proposed Petroleum (Exploration and Production) Amendment Bill [8] - The bill aims to modernize the legal framework of the sector, enhance fiscal transparency, and tighten oversight as Namibia approaches oil production [9]