TotalEnergies Delays Final Decision on Namibia’s Venus Oil Discovery Amid Government Talks
TotalEnergies has confirmed it will not proceed with the development of its multi-billion-dollar Venus oil discovery in Namibia’s Orange Basin until a formal agreement is reached with the Namibian government.
During the company’s second-quarter earnings call, TotalEnergies CEO Patrick Pouyanné emphasized the need for alignment and mutual understanding before committing to a final investment decision (FID).
“You’re dealing with a country that is new to the oil industry, so alignment and mutual understanding are crucial,” Pouyanné said.
“I want to avoid a situation where a dispute arises later because the Namibian authorities feel they weren’t fully informed or didn’t fully understand the project. It’s better to take the time at the beginning to ensure everything is clear.”
The Namibian government is aiming for first oil production by the end of 2029, which would require major decisions—such as the FID—to be made before the end of 2025.
“To meet that target, we must make key decisions this year, or at the latest by the end of 2025,” Pouyanné added. “We’ve communicated that to the government, and we are actively progressing, though I can’t disclose more details at this time.”
While Pouyanné acknowledged Namibia’s political stability, he noted that the country’s oil and gas regulatory framework is still evolving.
TotalEnergies is seeking a shared vision with the government regarding the project’s scope, fiscal terms, and local participation before moving forward.
“We’re ready on our end. But it’s essential to proceed cautiously, as we’ve seen similar challenges in emerging markets like Mozambique,” Pouyanné said.
In April 2025, Pouyanné visited President Netumbo Nandi-Ndaitwah in Windhoek to reaffirm the company’s commitment to engaging with Namibia’s growing energy sector.
In addition to the Venus development, TotalEnergies is also exploring other regional opportunities. Pouyanné hinted at a possible farm-in agreement for Galp’s Mopane discovery, although he indicated that discussions are still in early stages.
“As for the opportunity next door, it’s still a bit distant. We’ll see what happens. That’s often how things begin in this industry,” he remarked.
Meanwhile, the Namibian government, through its Upstream Petroleum Unit in the Presidency, stated that no incentives have been offered to TotalEnergies for the Venus project. According to the unit, formal negotiations with the company have not yet started.
