The Namibian government has started reviewing the field development plan submitted by TotalEnergies for the proposed Venus oil project, moving the process closer to negotiations and a final investment decision.
Prime Minister Elijah Ngurare said the upstream petroleum unit within the Office of the President has advanced work on technical and policy matters, including an initial assessment of the development plan.
He explained that the unit has begun the first phase of reviewing the FDP and is providing feedback as part of preparations for negotiations and an eventual investment decision.
Ngurare also said the unit has completed regional consultations on Namibia’s local content policy and has submitted proposed amendments to petroleum legislation for consideration by parliament.
He added that officials have forwarded the proposed organizational structure of the unit to the Public Service Commission for review.
These developments come as projections show the Venus oil project could generate between N$127 billion and N$229 billion in government revenue over 25 years, according to its environmental and social impact assessment.
The assessment estimates oil income could contribute between 7.9% and 14.2% of total government revenue, based on oil price assumptions of $50 and $75 per barrel.
A joint venture led by TotalEnergies is advancing the Venus project, with partners QatarEnergy, Impact Oil and Gas, and National Petroleum Corporation of Namibia holding participating interests.
The assessment states that government earnings in the early production phase will mainly come from royalties and export levies while investors recover development costs before petroleum income tax payments begin.
It notes that these revenues will remain relatively high during early production because output levels are expected to be strong.
Once companies recover investment costs, petroleum income tax will become the main source of government revenue, exceeding royalties and export levies.
Because Namcor is fully owned by the state, any income generated from its equity stake will flow directly to the government.
The report also explains that the project’s fiscal impact will change over time, with early revenues tied to production-based charges and longer-term returns influenced by oil prices, production performance, and cost recovery.
source: www.marketscreener.com
African Energy Council