French energy giant TotalEnergies has signed agreements to operate the offshore PEL104 exploration license in Namibia, holding a 42.5 percent stake in the project, the company announced Thursday. The license covers approximately 11,000 square kilometers in the Lüderitz Basin off Namibia’s southwestern coast.
The move comes as part of TotalEnergies’ ongoing expansion in Namibia, where the company has become a leading player in offshore oil exploration. The transaction, whose financial terms were not disclosed, remains subject to regulatory approvals and partner consents.
Following completion, the PEL104 license will be jointly held by a consortium: TotalEnergies and Brazil’s Petrobras each holding 42.5 percent, Namibia’s national oil company Namcor retaining 10 percent, and Eight Offshore Investments Holdings holding 5 percent, according to the company statement.
TotalEnergies has pursued a strategic push into Namibian offshore resources in recent months. In December 2025, the French multinational became operator of the PEL83 license in the Orange Basin, acquiring a 40 percent stake from Portugal’s Galp. The Orange Basin is home to several major discoveries, including the Venus field, and is expected to play a key role in expanding Namibia’s oil output.
Executives from TotalEnergies and Galp met Namibia’s Vice President, Netumbo Nandi-Ndaitwah, in Windhoek in late January 2026 to present updates on offshore operations. While the meeting reaffirmed the companies’ commitment to ongoing projects, no new investment decisions were announced, according to Upstream Online reports.
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Analysts point to Namibia’s offshore discoveries as a potential game-changer for the country’s oil sector. Consultancy Wood Mackenzie estimated in 2024 that Namibia’s production could exceed 500,000 barrels per day within a decade, driven largely by developments in the Orange Basin. Achieving such output would require annual investments of roughly US$4 billion during the first half of the next decade.
The PEL104 license is the latest addition to Namibia’s growing offshore portfolio, which has attracted global majors seeking new production opportunities in southern Africa. By becoming operator, TotalEnergies assumes responsibility for exploration planning, drilling programs, and overall project management, a role that could significantly accelerate development timelines.
Namibia’s government has actively encouraged foreign investment in its oil sector, seeking to leverage offshore resources for economic growth. Local participation in offshore projects, through state-owned Namcor and minority stakeholders, ensures that the country benefits from resource development while retaining oversight of strategic assets.
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TotalEnergies’ expansion aligns with a broader industry trend in the region, as energy majors diversify portfolios and target underexplored basins in Africa. The company’s presence in Namibia complements its global offshore operations and positions it to benefit from the expected increase in oil demand over the next decade.
The company said that the PEL104 license is strategically significant, offering access to promising geological formations within the Lüderitz Basin. Exploration success could reinforce Namibia’s position as an emerging oil producer in southern Africa and provide long-term growth opportunities for both operators and the national economy.
As development plans proceed, TotalEnergies and partners are expected to undertake detailed seismic studies, exploratory drilling, and resource evaluations. The success of these operations will determine the scale and timing of potential production, which could contribute substantially to Namibia’s energy sector and export revenues.
The PEL104 agreement further consolidates TotalEnergies’ leadership in Namibia, following its prior acquisition of PEL83. Combined, these licenses strengthen the company’s portfolio in the region and reinforce its commitment to long-term growth in Africa’s offshore oil sector.
