Namibia mulls financial incentives to kick-start offshore oilfield development

Namibia, one of the world’s most significant oil frontiers but not currently a producer, hopes that offshore oilfield development by energy majors will soon start to generate oil revenue.

According to a special adviser in the presidency, Namibia is considering financial incentives to fast-track the development of its Orange Basin oilfields managed by a consortium led by French supermajor TotalEnergies, Bloomberg reported on June 19.

Although offshore exploration in Namibia started in the 1970s when Chevron (US) discovered the Kudu gas field in shallow water, there was limited interest from major international oil companies in exploring the country’s oil and gas potential. This changed in 2022 with the announcement of major finds by Shell (UK) with its Graff discovery, and TotalEnergies with the Venus-1 discovery, the French company’s largest find in almost 20 years.

Not all exploration has been successful. In January 2025, Chevron announced a dry well, and Shell downgraded its oil discoveries offshore Namibia as uncommercial because of high gas content, dampening early optimism. However, TotalEnergies remains confident and is working with the Namibian government to lower production costs, as earlier reported by NewsBase.

“The government recognises 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, told Bloomberg.

In response to questions, she noted that the government was exploring ways to improve financing options, including credit support instruments and partnerships with international lenders, to help local businesses overcome challenges in accessing capital.

TotalEnergies holds a 45.25% stake in Block 2913B, which includes the Venus discovery, with partners QatarEnergy (35.25%), UK-based private explorer Impact Oil and Gas (9.5%), and Namibia’s national oil company NAMCOR (10%).

According to Shilunga, NAMCOR is seeking a bigger role in the country’s oil and gas developments in alignment with the government’s strategy to build capacity and maximise local production. She added that Namibia was also evaluating the potential to hold licensing rounds to boost upstream activity.

Energy analysts say the next 12 to 24 months will be crucial for Namibia’s oil ambitions, with TotalEnergies’ final investment decision (FID) in 2026 expected to shape the wider development of the basin.

In the meantime, drilling and exploration activities in the Orange Basin are progressing. As reported by Bloomberg, Namibia is aiming to achieve first oil production within five years, as the country looks to establish itself as a producer before global demand shifts significantly towards low-carbon and renewable energy sources.