Ministry of Industries, Mines and Energy flags TotalEnergies and Petrobras oil block deal as unlawful

The Ministry of Industries, Mines and Energy has declared the acquisition of stakes in oil block 2613 by Petrobras and TotalEnergies as unlawful. According to the ministry, the Namibian government was not notified of these developments, which is a requirement under the law. The ministry emphasized that any transfer, assignment, or acquisition of participating interests in petroleum licenses in Namibia must receive prior approval from the minister. Petrobras announced on Friday that it had acquired a 42.5% stake in oil block 2613, with TotalEnergies also acquiring a 42.5% stake and being named the operator. The ministry stated that it was informed of Petrobras' press release only minutes before its public release. Section 91b of the Petroleum Act mandates written approval from the minister for any transfer or assignment of interest in a license. The ministry concluded that Petrobras and TotalEnergies acted illegally if they did not obtain this approval. The oil block was previously owned by Eight Offshore Investment Holdings and Maravilla Oil & Gas. Eight will retain a 5% stake, while the National Petroleum Corporation of Namibia holds the remaining 10%. Both TotalEnergies and Petrobras have indicated that the transaction is not yet complete and is subject to the Namibian government’s approval process.