TotalEnergies and the government of Namibia are currently negotiating to determine the terms for the development of the Venus oil field. These negotiations continue as the French company initially aimed to secure a final investment decision (FID) by 2026. However, disagreements with the Namibian government have impacted the timeline for achieving this goal.
Details of the negotiations and production timeline
In April, TotalEnergies announced that its goal was to secure the final investment decision this year, but negotiations with the Namibian government have not yet reached a conclusion. Cornelia Shilunga, special advisor and head of the upstream oil and gas unit in the Namibian presidency, confirmed in an interview that negotiations are still ongoing but refrained from providing further details on the likelihood of reaching an investment decision this year.
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Patrick Pouyanné, CEO of TotalEnergies, expressed optimism last month that all parties are eager to make progress on this project and that the company is working towards this goal in the coming months. The Venus field, located in Namibia's offshore waters, is expected to produce around 160,000 barrels of oil per day.
Developments in the oil industry in Namibia
Namibia, with a population of about 3 million, will be recognized as an oil-producing country for the first time upon the completion of oil field developments. However, the development process is time-consuming due to the lack of historical experience in hydrocarbons, and oil production is likely to be delayed until the late 2030s.
Mike Sangster, Senior Vice President of TotalEnergies, highlighted the importance of a swift decision-making process in the host country at a recent conference in Cape Town, stating, "When entering a new country with no history in hydrocarbons, there is a need for significant learning from local authorities and the national oil company. This can impact the speed of project advancement."
TotalEnergies has a significant presence in Namibia's offshore waters and uses the port of Lüderitz as its operational base. Additionally, the company plans to make a decision regarding the development of the Mpanene field, located in another block, by 2028.
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