TotalEnergies to Decide on Namibia Oil Project in 2026 Amid Development Challenges. TotalEnergies has announced that it will make a final investment decision (FID) on its oil project in Namibia in 2026, pushing back the timeline from the initially expected late 2025 decision. The delay comes as the company assesses the commercial viability of its discoveries and works to address development challenges.
The project, located in Namibia’s Orange Basin, is expected to produce around 150,000 barrels of oil per day—slightly lower than the earlier estimate of 160,000 barrels per day. One of the key hurdles in the project’s development is the high amount of associated natural gas found in the discoveries, which increases extraction and processing costs. TotalEnergies aims to achieve a breakeven cost of under $20 per barrel, but the gas content complicates the economics of the development.
Namibia has emerged as a promising frontier for oil exploration, with multiple discoveries made by TotalEnergies and other energy companies such as Shell. If the project moves forward, it could significantly boost Namibia’s economy, attracting investment and creating job opportunities in the energy sector.
Despite the delay, TotalEnergies remains committed to evaluating the project’s feasibility. The company continues to conduct appraisal drilling and technical studies to determine the best path forward. The final investment decision in 2026 will be based on factors such as resource evaluation, infrastructure development, and market conditions.
The Namibian government has expressed optimism about the country’s oil potential, seeing it as a strategic opportunity to diversify the economy. However, the delay in TotalEnergies’ decision highlights the complexities of developing large-scale oil projects in emerging energy markets.