Namibia is poised for significant advancements in its energy sector as TotalEnergies and BW Energy plan to make final investment decisions (FIDs) on their respective offshore projects by late 2026. These developments could mark a transformative period for the country, which currently has no hydrocarbon production.
Petroleum Commissioner Maggy Shino announced that TotalEnergies is expected to submit its oilfield development plan for the Venus oil discovery by mid-2025, with a FID anticipated in the fourth quarter of 2026. Similarly, BW Energy aims to finalize a development plan for the Kudu gas field by June 2025, targeting a FID in late 2026.
TotalEnergies holds a 45.25% stake in the Venus project, located in offshore block 2913B, alongside QatarEnergy (35.25%), Impact Oil and Gas (9.5%), and Namibia’s state-owned NAMCOR (10%). The project faces challenges, including high gas content and the need to maintain production costs below $20 per barrel to meet internal profitability thresholds. CEO Patrick Pouyanne indicated that discussions with the Namibian government regarding cost-sharing are still in early stages.
BW Energy, holding a 95% interest in the Kudu gas project with NAMCOR owning the remaining 5%, plans to drill a new gas well between September and October 2025. This initiative is part of a multi-phase exploration strategy aimed at enhancing the project’s commercial viability. The Kudu gas field, discovered in 1974, has proven reserves of approximately 1.3 trillion cubic feet of gas and is central to Namibia’s strategy to diversify its energy mix and reduce reliance on imports.
These projects are critical for Namibia’s aspirations to become a significant player in the global energy market. However, challenges such as high gas content in offshore fields and the need for substantial infrastructure investments remain. The government’s commitment to facilitating these developments, including potential fiscal stability clauses in petroleum contracts, will be pivotal in attracting and retaining investment.
As Namibia navigates these complex developments, the successful execution of the Venus and Kudu projects could significantly boost the nation’s economy and energy independence.
