The National Petroleum Corporation of Namibia (NAMCOR) has reported significant progress in oil exploration activities within the Orange Basin, located offshore Namibia. Several oil companies holding exploration licenses in the region have commenced drilling operations, yielding promising results. NAMCOR, which holds a 10% stake in nearly all exploration licenses in the basin, highlighted the area’s potential as one of the world’s most promising oil and gas regions.
In a recent development, Shell announced a write-down of approximately $400 million related to its offshore oil discovery in Namibia’s PEL 39 block, citing technical and geological challenges that rendered the find commercially unviable at this time.
Namibia’s Minister of Mines and Energy, Tom Alweendo, addressed the situation, emphasizing that Shell’s decision does not signify a setback for the country’s oil and gas ambitions. He stated, “We are positive that the remaining potential of PEL 39 and other exploration campaigns will translate into commercial developments.” Alweendo reaffirmed the government’s commitment to collaborating with industry partners to advance exploration and development efforts in the Orange Basin.
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| Tom Alweendo |
Despite the challenges faced by Shell, other major oil companies continue to invest in Namibia’s offshore potential. TotalEnergies is progressing with its multi-well appraisal and exploration drilling campaign in Block 2913B, situated in PEL 56, aiming for a final investment decision in 2025 and targeting first oil production by 2029. Similarly, Galp is seeking additional partners for the Mopane complex in PEL 83, following two discoveries in 2024.
These developments prove the continued interest and investment in Namibia’s oil and gas sector, with the Orange Basin remaining a focal point for exploration activities.
