Namibia has recently emerged as a promising hotspot for offshore oil exploration, attracting major international companies like Shell, TotalEnergies, and Portugal’s Galp, which have made significant discoveries in its waters. However, the lack of existing infrastructure means that development costs remain high, posing challenges for production plans.

To encourage these supermajors to commit to final investment decisions, Namibia is considering offering additional incentives and exploring financing options. Kornelia Shilunga, a senior government adviser, highlighted the government's awareness of the high costs involved in developing projects like TotalEnergies’ Venus oil field. The country is also looking into credit support mechanisms and partnerships with international lenders to ease financial burdens.

Namibia is actively planning to attract more investment by organizing oil and gas licensing rounds to boost exploration and development activities. The government expects that major companies like TotalEnergies and BW Energy will finalize their investment decisions by late 2026, with development plans for the Venus project and smaller discoveries underway.

Despite the optimism, there have been setbacks, such as Shell’s recent \$400 million write-down on an offshore discovery that may not be commercially viable. Nevertheless, TotalEnergies continues discussions with Namibian authorities about developing the Venus field, contingent on meeting the company’s return targets, signaling cautious but ongoing progress in the country’s emerging oil sector.