French energy major, Total Energies, has said it will not proceed with the development of its multi billion dollar Venus oil discovery in Namibia until it reaches a firm agreement with the Namibian Government.
The company’s Chief Executive Officer, Patrick Pouyanné, said the final investment decision on the high profile offshore project in the Orange Basin will only happen after both parties establish a mutual understanding of project terms.
Speaking during the company’s Second Quarter Earnings Call, Pouyanné explained that while Total Energies is technically ready to move forward, its priority is to avoid misunderstandings that could trigger future disputes with the Namibian authorities.
“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.”
Namibia seeks first oil by 2029
The Venus discovery, first made in 2022, is considered one of the largest oil finds globally in recent years and could transform Namibia into a key oil producing nation.
However, progress has remained slow due to the country’s limited regulatory experience and the need for new legal and fiscal frameworks to support development.
Namibia is targeting first oil production from the Venus field by the end of 2029.
To meet this target, key investment decisions must be taken before the close of 2025. Pouyanné stressed this timeline to analysts during the call, saying,
“That means we need to make key decisions this year, by the end of 2025, if we want to meet that target. We’ve explained that to them, and now we’re doing the work. We are progressing, though I can’t share more details at this point.”
He further mentioned that although Namibia enjoys political stability, it is still in the early stages of establishing a comprehensive oil and gas governance structure.
According to Pouyanné, TotalEnergies is seeking a unified vision with the Government, regulators, and other stakeholders regarding the project’s scope, fiscal terms, and levels of local participation.
Other projects in Namibia
Beyond Venus, Total Energies is eyeing other opportunities in Namibia’s offshore basin.
Pouyanné said that a possible interest in Galp’s Mopane discovery, located near the Venus field, but said any decision on that would come later.
“As for the opportunity next door, it’s still a bit distant. We’ll see what happens. In this business, that’s how things begin. I’ve let the company continue working on it,” he added.
The oil major’s careful stance echoes the broader industry view that successful frontier oil developments require not just resource potential but also regulatory certainty and long term investment security.
Meanwhile, Namibian officials have said discussions with Total Energies are still at an early stage.
The country’s Upstream Petroleum Unit in the Presidency told local media outlet Namibia Mining & Energy that it has not offered any incentives to Total Energies regarding the Venus development.
According to the unit, engagement with the company on this matter has not officially begun.
