Stand-off: TotalEnergies demands key govt assurances before Venus investment
TotalEnergies CEO Patrick Pouyanné has signalled that the French energy giant will not proceed with the development of its landmark Venus oil discovery offshore Namibia without a firm agreement on key fiscal and operational terms with the Namibian government.
In an interview with Upstream on Monday, Pouyanné stressed that the success of the ultra-deepwater Venus project - considered one of the world’s most promising recent offshore discoveries - hinges on a transparent and stable partnership with Namibian authorities.
“It takes two to tango,” Pouyanné said. “We need to be aligned with the government. That means agreeing on how we share costs and manage risk.”
Awaiting regulatory clarity
TotalEnergies plans to submit a full field development plan for the Venus field in Block 2913B before the end of 2025, with a final investment decision (FID) tentatively set for the fourth quarter of 2026. However, further investment is on hold pending clarity on a range of fiscal and regulatory conditions, including cost-recovery terms and local content requirements.
Petroleum commissioner Maggy Shino, speaking on behalf of the mines ministry, reiterated Namibia’s expectation that project timelines be met while ensuring that Namibians derive substantial benefit from any oil development.
As part of its economic empowerment agenda, the government is proposing to increase the minimum local ownership threshold from the current 51% to 60% by 2030. Namibia also aims to produce 150 million barrels of oil equivalent by 2030 under its sixth National Development Plan (NDP6).
Pouyanné cautioned, however, that overly aggressive fiscal demands could undermine the project’s viability.
“We don’t want to launch a project if the cost of production is too high. If the breakeven is above US$20 per barrel, it becomes very difficult,” he warned.
Complex project, high stakes
Located more than 3 000 metres below sea level in the Orange Basin, the Venus field is believed to contain billions of barrels of recoverable oil. TotalEnergies holds a 45.25% stake in the block, alongside QatarEnergy (30%), Impact Oil & Gas (20.75%), and Namcor (10%).
Shell’s recent withdrawal from neighbouring PEL 39 - after a US$400 million write-down on its Graff and Jonker finds - has underscored the commercial and geological challenges of offshore exploration in Namibia’s deep waters. Despite the risks, Pouyanné expressed confidence in TotalEnergies’ technical capacity to develop the Venus field.
Investing in local skills
Pouyanné emphasised that TotalEnergies intends to build long-term, mutually beneficial partnerships in Namibia. Among its proposals is the establishment of a national petroleum training institute - modelled after a similar initiative in Uganda - to help develop local skills and capacity.
“It’s not just about oil. It’s about skills, jobs, and long-term partnership,” he said.
The company has already begun engaging local suppliers and service providers in preparation for the project’s next phase.
With Shell stepping back and Galp Energia’s Mopane prospect still under appraisal, the Venus discovery is increasingly seen as central to Namibia’s ambitions of becoming a commercial oil-producing nation by the end of the decade.
If fully developed, the field could yield up to 200 000 barrels of oil per day via a floating production, storage and offloading (FPSO) vessel - potentially making it one of Africa’s largest new oil projects.
In an interview with Upstream on Monday, Pouyanné stressed that the success of the ultra-deepwater Venus project - considered one of the world’s most promising recent offshore discoveries - hinges on a transparent and stable partnership with Namibian authorities.
“It takes two to tango,” Pouyanné said. “We need to be aligned with the government. That means agreeing on how we share costs and manage risk.”
Awaiting regulatory clarity
TotalEnergies plans to submit a full field development plan for the Venus field in Block 2913B before the end of 2025, with a final investment decision (FID) tentatively set for the fourth quarter of 2026. However, further investment is on hold pending clarity on a range of fiscal and regulatory conditions, including cost-recovery terms and local content requirements.
Petroleum commissioner Maggy Shino, speaking on behalf of the mines ministry, reiterated Namibia’s expectation that project timelines be met while ensuring that Namibians derive substantial benefit from any oil development.
As part of its economic empowerment agenda, the government is proposing to increase the minimum local ownership threshold from the current 51% to 60% by 2030. Namibia also aims to produce 150 million barrels of oil equivalent by 2030 under its sixth National Development Plan (NDP6).
Pouyanné cautioned, however, that overly aggressive fiscal demands could undermine the project’s viability.
“We don’t want to launch a project if the cost of production is too high. If the breakeven is above US$20 per barrel, it becomes very difficult,” he warned.
Complex project, high stakes
Located more than 3 000 metres below sea level in the Orange Basin, the Venus field is believed to contain billions of barrels of recoverable oil. TotalEnergies holds a 45.25% stake in the block, alongside QatarEnergy (30%), Impact Oil & Gas (20.75%), and Namcor (10%).
Shell’s recent withdrawal from neighbouring PEL 39 - after a US$400 million write-down on its Graff and Jonker finds - has underscored the commercial and geological challenges of offshore exploration in Namibia’s deep waters. Despite the risks, Pouyanné expressed confidence in TotalEnergies’ technical capacity to develop the Venus field.
Investing in local skills
Pouyanné emphasised that TotalEnergies intends to build long-term, mutually beneficial partnerships in Namibia. Among its proposals is the establishment of a national petroleum training institute - modelled after a similar initiative in Uganda - to help develop local skills and capacity.
“It’s not just about oil. It’s about skills, jobs, and long-term partnership,” he said.
The company has already begun engaging local suppliers and service providers in preparation for the project’s next phase.
With Shell stepping back and Galp Energia’s Mopane prospect still under appraisal, the Venus discovery is increasingly seen as central to Namibia’s ambitions of becoming a commercial oil-producing nation by the end of the decade.
If fully developed, the field could yield up to 200 000 barrels of oil per day via a floating production, storage and offloading (FPSO) vessel - potentially making it one of Africa’s largest new oil projects.
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