TotalEnergies, BWEnergy set to decide on Namibia projects 'late next year'

Namibia expects French oil major TotalEnergies to take a final investment decision (FID) on its Venus discovery in the African country in the fourth quarter of 2026, the country's petroleum commissioner said on Tuesday.

Maggy Shino said at a conference in Paris that she expects TotalEnergies to submit its first oilfield development plans for approval in June or July.

Shino added that Namibia expected to finalise another field development plan with Norway's BWEnergy to develop the country's smaller Kudu gas field in June, with a FID also coming in late 2026.

In January Shell wrote down its Namibia oil discoveries as uncommercial due to a high amount of gas in the fields, dampening initial enthusiasm that the southern African country, which has no hydrocarbon production, could become a major producer.

TotalEnergies CEO Patrick Pouyanne has said he believes the French oil major can handle those geological challenges, but that a FID will depend on whether production costs can be kept under an internal requirement of $20 per barrel.

Pouyanne told investors on a first-quarter results call last month that talks to persuade the Namibian government to shoulder a higher burden of the costs were still "premature", but that "it takes two to tango".

TotalEnergies owns a 45.25% interest in offshore block 2913B containing the Venus discovery, alongside QatarEnergy (35.25%), Africa Oil's Impact Oil and Gas (9.5%) and Namibia's state-owned Namcor (10%).

BWEnergy holds a 95% interest in the Kudu prospect, with Namcor holding the remaining 5%.

Reuters