Namibia Rolls Out Financial Incentives to Accelerate TotalEnergies Offshore Development
Namibia is preparing to offer substantial financial incentives to accelerate the development of offshore oil fields managed by TotalEnergies, as the southwest African nation races to establish itself as an oil producer before global demand shifts toward renewable energy sources.
The initiative comes as TotalEnergies and Shell have made significant discoveries off Namibia’s coast since 2022, though the companies have also encountered dry wells that led to drilling cost write-offs. Kornelia Shilunga, special adviser and head of the upstream petroleum unit in the Namibian Presidency, confirmed the government recognizes the complexities and high costs associated with developing the Venus oil field.
The state is exploring various financing mechanisms, including credit support instruments and partnerships with international lending institutions, to address capital access challenges faced by local enterprises. Namibia targets first oil production within five years, with state oil company Namcor building capacity for a larger role in future developments.
The country is also evaluating the potential for licensing rounds to increase exploration activity, as part of a broader strategy to maximize local production and participation in the emerging oil sector.
Source: worldoil.com
