Venus oil project’s N$274bn cost exceeds Namibia’s GDP – Uanguta

The proposed development of TotalEnergies’ Venus oil discovery could require about US$17 billion (N$274 billion) in investment – an amount larger than Namibia’s entire annual economy, according to Bank of Namibia governor Ebson Uanguta.

Uanguta said Venus could produce about 150 000 barrels of oil equivalent a day at peak production, as Namibia prepares for the possibility of becoming an oil-producing country.

Speaking during a public lecture jointly hosted by the University of Namibia, Bank of Namibia and Bank of Botswana in Windhoek last week, Uanguta estimated Namibia’s economy at between US$14 billion and US$15 billion.

“The size of investment that we are talking about, we are talking about a size of investment of about 17 billion US dollars,” Uanguta said.

“Just one block, our economy is about 14, 15 billion. So, meaning to say that one block, if you look at it in terms of investment, is larger than our economy.”

TotalEnergies, however, has not confirmed a US$17 billion project cost. Chief executive Patrick Pouyanné said in September 2025 that offers received from contractors pointed to a revised budget of about US$10 billion to US$11 billion.

The company’s February 2026 update said competitive engineering, procurement and construction bids had increased confidence in the project’s costs, but did not disclose a revised total capital cost.

Venus has been fully appraised, with about 750 million barrels of oil equivalent in resources. Front-end engineering and design has been completed, while engineering work is well advanced.

The development is designed for plateau production of about 150 000 barrels of oil equivalent a day, with production costs below US$20 per barrel. TotalEnergies is working towards a potential final investment decision this year, with first oil targeted for 2030.

The project would be Namibia’s first FPSO development and is expected to open the Orange Basin as a new producing region.

‘Future anchor of growth’

Uanguta said the scale of Venus demonstrated why petroleum could become an important pillar of Namibia’s future economic growth alongside established mining industries.

“In addition to the ongoing mining activities regarding diamonds, gold, uranium, zinc and copper, we believe the petroleum sector will be the future anchor of our growth,” he said.

He said the impact of petroleum exploration was already reflected in Namibia’s foreign direct investment flows, despite the country not yet producing its first commercial barrel.

“The net FDI, as you can clearly see, has reached a record level since 2022,” Uanguta said.

“We expect further increase as projects move from exploration and development to production. This will be a significant component of our growth story in coming years.”

A ‘city under the sea’

Uanguta said developing Venus would require extensive subsea infrastructure connecting offshore wells to a floating production facility, describing the infrastructure beneath the ocean as a “city under the sea”.

“That vessel must be there 365 days a year, possibly for the next 35 years,” he said.

He said the long-term offshore operation would create opportunities for local businesses to supply workers with food and other services.

“Those 200 people must eat breakfast. They must eat lunch. They must eat dinner. So, what does it mean? That's where the local content also kicks in,” he said.

Uanguta said Namibian entrepreneurs and young people should prepare to participate in the emerging industry, including through supplying meat, fish and other goods.

He also rejected calls for Namibia to leave its petroleum resources undeveloped because of the global transition away from fossil fuels.

“Despite the ongoing green transition agenda, we do not believe we should leave our oil and gas in the ground solely to meet the global carbon emission agenda,” he said.

Uanguta said Namibia should pursue petroleum development alongside investment in renewable energy, particularly solar and wind.

“Jointly pursuing the petroleum sector and also the renewable sector at the same time will anchor our country to follow a dual-track growth strategy,” he said.