The Namibian government has begun reviewing a field development plan (FDP) submitted by TotalEnergies for the proposed Venus oil project, marking a key step towards formal negotiations and a final investment decision.
Prime minister Elijah Ngurare says the upstream petroleum unit in the Office of the President has made progress on both technical and policy fronts, including the initial assessment of the development plan.
"On the technical front, the Unit has commenced the first stage of reviewing and providing input on the FDP submitted by TotalEnergies, marking an important initial step towards formal negotiations and a final investment decision," he says.
Ngurare adds that the unit has concluded regional consultations on Namibia's local content policy and submitted a review of petroleum legislation for tabling in parliament.
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"In parallel, the proposed unit organisational structure has been submitted to the Public Service Commission for consideration," he says.
The developments come as the proposed Venus oil project is projected to generate between N$127 billion and N$229 billion in government revenue over a 25-year period, according to its environmental and social impact assessment (Esia).
The report estimates that oil revenues could account for between 7.9% and 14.2% of total government income, based on oil price assumptions of US$50 and US$75 per barrel.
The Venus development is being advanced by a joint venture led by TotalEnergies, which holds a 45.25% stake, alongside QatarEnergy (35.25%), Impact Oil and Gas (9.5%) and the National Petroleum Corporation of Namibia (Namcor) with 10%.
According to the Esia, government revenue in the early stages of production will be driven primarily by royalties and export levies, as capital investment costs are recovered before petroleum income tax is realised.
"During this period, government revenue will mainly comprise royalties and export levies, both of which will be relatively high due to elevated production levels," the report says.
It adds that petroleum income tax will become the dominant revenue stream once development costs have been recovered.
"Once investment costs have been recovered, the project will begin paying petroleum income tax (PIT), with PIT revenues exceeding royalty and export levy income," the report notes.
As Namcor is wholly state-owned, income derived from its equity participation will accrue directly to the state.
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However, the report cautions that the fiscal impact of the project will evolve over time, with early revenue flows dependent on production-linked levies and longer-term returns shaped by oil prices, production levels and cost recovery dynamics.
