The Stake We Did Not Pay For
Namibia is evaluating its ownership strategy regarding offshore oil discoveries, specifically the Venus field operated by TotalEnergies. The article discusses the trade-offs between 'carried' stakes, where costs are deferred, and direct equity ownership for the state.
Why it matters
The decision impacts how much long-term wealth the nation retains from its natural resources versus the immediate financial risks of exploration.
Namibia already holds a place on the cap table of its own oil. Whether that place becomes ownership in the fullest sense is a decision we still have time to make.
In the closing months of this year, TotalEnergies is expected to decide whether to build the Venus field. If it proceeds, and if the schedule is maintained, Namibia becomes an oil producer by 2029 and seven years after the first well, we are expected to discover what lies beneath the Orange Basin.
More than 11 billion barrels of oil in place have been identified off our coast. The national conversation has settled, understandably, on how much money will come. The better question is what we will own when it does?
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