Shang Wu Bu Wang Zhan·2026-02-14 15:50Core Viewpoint - The Namibian government has rejected the offshore license transaction between TotalEnergies and Petrobras, signaling a strong stance on regulatory sovereignty in the oil industry [2][3] Group 1: Regulatory Compliance - The core issue revolves around procedural compliance, as Namibian law requires prior approval from the Minister of Energy for any transfer of oil and gas license rights [2] - The transaction was publicly announced without the necessary approval, which the government views as a violation of legal procedures that could negatively impact future regulatory practices [2] Group 2: Government's Position - The Ministry of Mines and Energy emphasized that the transaction did not adhere to the statutory prior notification process, and the President's office stated that any unapproved transaction would not be recognized [2] - Both TotalEnergies and Petrobras have expressed their intention to comply with local laws, highlighting a significant difference in regulatory understanding between foreign companies and resource-rich governments [2] Group 3: Industry Context - This confrontation occurs during a critical period of transformation in Namibia's oil industry, as the government is pushing for reforms in the oil and gas regulatory framework [3] - The government plans to establish a new presidentially appointed regulatory body and adjust the existing management system, aiming to send a clear message to international investors that while Namibia welcomes foreign investment, it will strictly enforce its own industry rules [3] - As Namibia approaches its first oil production phase, balancing foreign investment needs with sovereign regulatory authority will be a central issue in resource governance [3]