TotalEnergies, a French multinational, and Petrobras, Brazilian state-owned oil company, recently jointly acquired stakes in Petroleum Exploration Licence 104 (PEL104) in the Lüderitz Basin in Namibia. However, the Namibian government denied the acquisition, claiming that there were irregularities in the acquisition process.
This challenge throws the spotlight not only on the issue of compliance but also on the significance of the Lüderitz Basin as a frontier that is becoming attractive in the Namibia offshore exploration and Africa’s landscape. It raises questions about the future of one of Africa’s most promising oil frontiers.
The conflict goes beyond local politics. It is a study in how states and global energy giants navigate legal obligations, leverage geological promise and shape the continent’s emerging energy map.
Namibia’s regulatory standoff
On 8 February 2026, Namibia’s Ministry of Industries, Mines and Energy publicly stated that it had not been formally notified about the PEL104 transaction, a requirement stipulated in Section 9(1)(b) of the Petroleum Act, which mandates written approval from the energy minister for any transfer or acquisition of petroleum licences.
In a statement, the Ministry said it was not notified of the developments, and only learned about the planned announcement of the deal “a few minutes” before its release.
“The government makes it clear that in accordance with the law, any transfer, assignment, or acquisition of participating interests in petroleum licenses in Namibia must obtain prior approval of the minister,” the statement said.
Officials emphasised that no licence transfer can proceed without due statutory process. A presidential spokesperson reiterated: “No transaction can be recognised or considered valid” unless ministerial consent is obtained.
In the context of an economy that has not yet begun large scale commercial production of oil, the emphasis on procedural compliance can be seen to reiterate the efforts of Namibia to establish its regulatory control at this early stage.
The standoff also highlights the growing concerns about the oversight role in Namibia’s upstream industry and the robustness of the institutional frameworks as Namibia readies itself for first commercial production.
What the deal actually means
The TotalEnergies-Petrobras deal involves the PEL104 license, which is a deepwater block in the Lüderitz Basin, spanning 11,000 km² offshore Namibia.
As per the terms of the deal between the two companies, TotalEnergies and Petrobras will take equal stakes of 42.5% each, while the state-owned oil company in Namibia, NAMCOR, will retain 10%, and Eight Offshore Investments Holdings will take 5%.
Total will assume the role of the operator in the new license, marking the expansion of TotalEnergies’ exploration activities in Namibia.
A representative of the french major emphasized that the acquisition will improve its position in an area where it is already moving forward with discovery and development efforts, particularly on the Venus and Mopane prospects.
“TotalEnergies further strengthens its position in Namibia by entering this new exploration license as operator. While progressing towards the development of Venus and Mopane discoveries, we are very pleased to expand our portfolio and continue exploring the prolific resources of Namibia, in order to unlock further value that will benefit the country and all stakeholders,” Nicolas Terraz, President Exploration & Production at TotalEnergies, said in a press release.
However, the critical technical element here is this: the transaction is still contingent on the usual third-party approvals from the Namibian authorities and joint venture partners. This point is crucial and pivotal to the regulatory dispute now unfolding.
Why Lüderitz Basin?
In order to fully grasp the implications of this dispute, it is necessary to understand why the Lüderitz Basin is so important.
The Lüderitz Basin is situated in the southwest offshore frontier of Namibia, close to the Orange Basin, which has emerged in the last ten years as one of the most promising deepwater oil exploration frontiers in the world. Lüderitz is more than a geological hotspot; it is also on the verge of becoming the engine of Namibia’s energy future.
The port has reportedly reached 95% berth occupancy, prompting an expansion that will double annual cargo capacity from three million to six million tonnes by 2027, extend the quay wall, and lay groundwork for the planned Angra Point deepwater port to service larger oil, gas and bulk cargo vessels.
At the same time, Lüderitz sits at the heart of Namibia’s green hydrogen ambitions, leveraging its abundant solar resources while positioning itself as a natural support base for nearby offshore discoveries such as Venus and Graff.
Geologists describe the basin as a “next-generation offshore and energy frontier.”
Thick source rocks beneath deepwater sediments create conditions for potentially large hydrocarbon accumulations. In contrast to mature West African basins, the Lüderitz basin provides a unique opportunity for deepwater exploration that has yet to be tapped.
According to industry players, the discoveries made in the region could enable the development of infrastructure such as floating production, storage, and offloading vessels that have the capacity to produce hundreds of thousands of barrels per day.
But the basin’s promise also raises climate governance questions. Experts argue that development cannot proceed without rigorous climate safeguards.
“Namibia must undertake a formal climate compatibility review, one grounded in transparent emissions modelling, methane intensity benchmarking, flaring prohibition standards and stress-tested scenarios across both 1.5°C and well-below 2°C demand trajectories,” R. Shayan Tupsee, a Gender and Climate Technology Expert at the United Nations Climate Technology Centre & Network, told Energy in Africa.
Without such safeguards, Tupsee warns, new production risks creating long-term carbon lock-in that could undermine Namibia’s climate commitments.
Strategic rationale for the acquisition
For the companies involved, the PEL104 acquisition is far more than an incremental stake, it represents a calculated bet on long‑term deepwater potential.
Total, which has been present in Namibia since the 1960s and now holds multiple licences across the Orange Basin, sees PEL104 as complementary to its existing portfolio.
The company is advancing work toward potential development of Venus, which could be Namibia’s first offshore producing field, and is involved in Mopane through strategic arrangements.
For Petrobras, which has a strong track record in ultra‑deepwater production off Brazil’s coast, the partnership offers a pathway to diversify reserves and extend its exploration reach beyond South America. Securing a foothold in an emerging African basin aligns with its global portfolio strategy as mature fields elsewhere decline.
Energy analysts say this logic is not theoretical.
Past experience in other frontier provinces, from offshore Brazil to Guyana, shows that early consolidation reduces exploration risk, improves data sharing and supports coordinated appraisal campaigns.
But it also means that companies willing to commit capital in these early stages stand to gain not just future production, but positioning advantage should the basin enter commercial development.
Namibia’s emerging offshore potential
Namibia’s offshore frontier has not always been on the global radar. Until the last decade, exploration was sporadic, and successes were infrequent. But a series of discoveries, led by Mopane and Venus have reshaped perceptions of the Orange and Lüderitz basins as world‑class exploration provinces.
According to industry estimates, total offshore reserves in Namibia are currently estimated to be around 20 billion barrels of oil, rivaling discoveries in other global frontier regions.
The implications of this for Namibia are enormous.
Commercial production will provide significant sources of royalties and taxes, as well as employment and skills transfer, as Namibians get involved in exploration and production activities, and allow local companies to participate in the higher-value oil and gas chains.
However, there are also challenges associated with the development of deepwater resources. The cost of subsea infrastructure is high, and there are long lead times and high technology and fiscal risks associated with such projects.
It is for this reason that governance and regulatory issues are important not only for attracting investment but also for ensuring that the benefits are shared and that negative environmental impacts are mitigated.
Broader implications for Africa
The Lüderitz Basin tale is not only Namibia’s but also Africa’s. On the continent, frontier basins from West Africa to the Indian Ocean margin are attracting the attention of majors and independents alike. Success in one area can encourage exploration in other areas, and this can set off investment, technology, and energy career opportunities.
However, this development has to be balanced with environmental protection and social responsibility. The environmental frameworks that regulate exploration have to ensure that offshore activities does not affect marine life and coastal communities.
“Namibia should enforce robust land and marine governance frameworks to protect sensitive ecosystems and local communities in the Lüderitz Basin,” Isaac Opolot, a Ugandan land governance and environmental specialist, told Energy in Africa.
“Environmental clearance, zoning, and local content policies are essential to ensure benefits accrue locally while minimizing environmental degradation.”
Opolot also points out the lessons that can be learned from other African countries that are oil producers, such as the creation of autonomous regulatory bodies and community participation in decision-making.
What happens next?
The TotalEnergies/Petrobras PEL104 dispute is one case that illustrates the complex interplay between the drive for commercial success and the need for regulatory control in Africa’s growing oil centers.
In such a resource-rich but still relatively young basin, regulatory certainty and procedural discipline will be critical.
The Lüderitz Basin could become a landmark in African offshore exploration, not just for the oil that may lie beneath its waters, but as a case study in the role of new producers in shaping the future of the global energy system.
What happens next will be significant not only for PEL104, but for the future of licence transfers in Namibia, the perception of regulatory risk, and the intentions of African frontier basins to take control in a global competition for capital.
If Namibia can manage this process in a transparent and predictable manner, it could help enhance its credibility as a frontier investment country, proving that resource nationalism and investor confidence need not be mutually exclusive.
