Namibia, one of the latest exploration hotspots in the world, is weighing potential further incentives and financing options to offer to international majors preparing plans for oil production offshore the African country.
Oil and gas supermajors, including Shell, TotalEnergies, and Portugal-based energy firm Galp, have already made large discoveries offshore Namibia.
However, without infrastructure in place, costs are higher for production development plans.
That’s why, Namibia, hoping to become the next Guyana, wants to help the supermajors with further incentives to have them reach final investment decisions on specific oil production projects.
“The government recognizes the complexities and high costs associated with the development of the Venus oil field by TotalEnergies,” Kornelia Shilunga, special adviser and head of upstream petroleum unit in the Namibian Presidency, has told Bloomberg.
Namibia looks at financing mechanisms, including credit support instruments and partnerships with international lending institutions, the official added.
The country also considers holding oil and gas licensing rounds to attract majors and boost activity.
Last month, a senior official said that Namibia expects TotalEnergies and Norway’s BW Energy to take final investment decisions on oil projects in late 2026.
TotalEnergies is expected to submit this summer a field development plan for the Venus project, while BW Energy and Namibia are finalizing a plan to develop a smaller discovery, said Maggy Shino, Petroleum Commissioner at the Namibian Ministry of Mines and Energy.
In recent years, international majors have flocked to explore offshore Namibia, hoping it would be the next Guyana and the next major oil producer and exporter.
However, in a recent setback, Shell wrote down $400 million over an oil discovery in offshore block PEL39 in Namibia that “cannot currently be confirmed for commercial development.”
TotalEnergies and Namibian authorities have started discussions about a possible development of the Venus discovery, TotalEnergies CEO Patrick Pouyanné said at the Q1 earnings call, adding that the supermajor could move with the project if it meets the rate of returns the company has set.
By Charles Kennedy for Oilprice.com
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