TotalEnergies, a French oil major, plans to make a final investment decision (FID) regarding its offshore oil discovery in Namibia in 2026, according to CEO Patrick Pouyanne. He announced this during a press briefing on Wednesday.
The expected development will have a production capacity of 150,000 barrels per day. This figure is lower than the 160,000 barrels per day discussed during an investor day in October.
Previously, Pouyanne aimed for a FID decision by the end of 2025 during a results call last April.
The company faces challenges in achieving breakeven costs of under $20 per barrel, which is a prerequisite for the FID.
Although Namibia has promising offshore discoveries, the lack of existing oil and gas production complicates development due to a high amount of gas that increases costs.
Recent updates revealed that BP wrote down its Namibian discoveries last month. Meanwhile, Chevron declared its initial findings to be commercially unviable.
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