Last weekend was an especially happy occasion for my wife and me, as we drove to Austin, Texas, to join our second daughter’s bridal lunch and other celebration activities ahead of her upcoming wedding.
Now, let’s take a look at two pieces of energy news from the past week.
Shangyou Nie
Editor, Well Read
TotalEnergies Kicks Off Contract Renegotiations in Namibia
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TotalEnergies has started talks with the Namibian government to improve fiscal terms in the contract for its Venus oil discovery in the Orange Basin. It hopes to bring the project on stream more economically.
The latest:
According to Upstream, TotalEnergies’ CEO Patrick Pouyanné met with Namibian President Netumbo Nandi-Ndaitwah in late April.
TotalEnergies wants to drive breakeven costs of the project below $20 per barrel.
During its Q1 earnings call, Pouyanné told analysts that the main challenge is the reservoir rocks’ low permeability (2–4 millidarcies).
Venus will be the first large oil development in Namibia, and TotalEnergies will be the first major to help build up service and logistical support in the area.
About the Venus discovery:
The field was discovered in February 2022 and contains about 750 million barrels of oil.
The Venus field is located at more than 3,000 meters of water depth.
TotalEnergies is the operator and holds a 45.25-percent stake in the Venus discovery, with partners Qatar Energy (35.25 percent), Impact Oil and Gas (9.5 percent), and state company Namcor (10 percent).
TotalEnergies now hopes to take the final investment decision for Venus in 2026, with first oil in 2029 or 2030.
Marula-1X is located some 47 kilometers south of the Venus discovery and was testing Albian sands in the Marula fan complex.
On 24 April, Rhino Resources announced that its Capricornus 1-X discovery well flowed 11,000 barrels of 37-degree API oil per day in PEL 85.
Rhino is the operator and holds 42.5 percent equity in PEL 85. Its partners include Azule Energy (a joint venture between BP and ENI, 42.5 percent), Korres Investments (5 percent), and Namcor (10 percent).
In the beginning of 2025, Shell wrote off some $400 million of its exploration expenditure in Namibia, claiming the discoveries were not economically viable due to challenging reservoir characteristics.
What they are saying: “I see a very similar situation to the one we had in Suriname a year ago, where, at the end of the day, we found a way to find a common ground between the government and ourselves in order to be able to move the project forward,” said Pouyanné.
What to watch:
Will TotalEnergies and the Namibian government reach a new agreement for fiscal terms?
Will other potential developers such as Galp Energia, Rhino Resources, and BW Energy request similar term improvements in Namibia?
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Australian major Woodside Energy announced last week that it has taken its final investment decision for its Louisiana LNG project. The capital investment for the three-train project is $17.5 billion and its capacity is 16.5 million tonnes per annum. First production is expected in 2029.
On 7 April, it sold a 40-percent interest in Louisiana LNG for $5.7 billion to Stonepeak.
On 19 April, it signed an LNG sale and purchase agreement with European buyer Uniper for 1 million tonnes per annum from Louisiana LNG, plus an additional 1 million tonnes per annum from Woodside’s LNG portfolio.
On 30 April, Woodside signed a long-term gas supply agreement with BP for up to 640 billion cubic feet, starting in 2029.
During Q1 2025, Woodside produced 546,000 barrels of oil equivalent, with 41:59 oil and gas ratio.
With this latest project, Woodside says it will become a powerhouse among the largest global LNG producers, with a total capacity of 24 million tonnes per annum in its portfolio by the 2030s.
Woodside will operate more than 5 percent of global LNG supply by 2030.
The project will deliver an internal rate of return above 13 percent. The payback period is seven years.
At full capacity, the foundation project will generate $2 billion in annual net operating cash during the 2030s.
The project will support 15,000 jobs during its construction phase.
Woodside partner Stonepeak will provide $5.7 billion for the $17.5 billion project on an “accelerated basis,” contributing 75 percent of the capital investment in 2025 and 2026.
What they’re saying:
“Woodside’s decision to invest in Louisiana is an unmistakable signal to the world that Louisiana is the epicenter of powering the globe,” said Governor Jeff Landry.
“Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio, combining long-life, flexible LNG assets with high-return oil assets,” said Meg O’Neill, CEO and managing director of Woodside, in a statement.
“As the largest single foreign direct investment in Louisiana’s history, Louisiana LNG will also be the first greenfield U.S. LNG project to go to final investment decision since July 2023,” said O’Neill.
🚨Trend alert: This is the latest example of an international company making an accelerated investment decision in U.S. LNG.
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