Namibia’s Oil And Gas Sector Remains Buoyant Despite Shell’s Write-Down

Namibia’s Ministry of Mines and Energy has reaffirmed the country’s commitment to developing offshore oil and gas resources, following Shell’s decision to write down its discoveries in the country.

A statement issued by the Ministry emphasised that the decision by Shell would not significantly impact Namibia’s oil and gas development, citing a plethora of ongoing exploration activities and investments by leading international oil companies.

The Ministry said they are positive that the remaining potential of PEL39 and other exploration campaigns would translate into commercial developments.

“Shell’s discoveries in PEL 39 represent just some of the many exploration milestones witnessed offshore Namibia since 2022,” the statement said.

A Hub Of Exploration Activity

Namibia’s offshore acreage has witnessed significant exploration milestones since 2022, with multiple discoveries and ongoing drilling campaigns.

TotalEnergies, one of the exploration firms, is making progress with its multi-well appraisal and exploration drilling campaign in Block 2913B, situated in PEL 56, with plans to make a Final Investment Decision in 2025 and achieve first oil by 2029.

Galp, meanwhile, is seeking to bring in another partner on the Mopane complex, following two discoveries at the Mopane-1X and its successful appraisal in Mopane-2A well in 2024. The Mopane complex in PEL 83 is believed to contain significant volumes of hydrocarbons in place.

New Entrants And Expanding Portfolios

Rhino Resources, in partnership with Azule Energy, NAMCOR, and Korres Investments, is also currently drilling the first of two high-impact wells at PEL 85. Petrobras is seeking farm-in opportunities offshore, while Chevron and its joint venture partners Namcor and Trago are undertaking drilling activities for the Kapana 1X well in PEL 90.

Chevron has also acquired an 80 per cent operated interest in PEL 82, featuring over 3,500 km² of 2D and 9,500 km² of 3D data.

Woodside Energy gained the rights to PEL 87 3D seismic data in 2024, which would further test the additional opportunities within the prolific Orange Basin.

A Bright Future Ahead

The Minister for Mines and Energy, Tom Alweendo, expressed confidence in Namibia’s offshore resources, stating, “These investments signal a strong commitment by leading international oil companies to unlock the full potential of Namibia’s offshore acreage. While the Shell write-down is unfortunate, we believe that we have barely begun to scratch the surface of the country’s offshore resources.”

The Ministry said government remains committed to working with dedicated companies to develop these resources, with plans to deliver first oil production in the near future.

Namibia’s oil and gas sector continues to gain momentum and is poised to become a significant player in the global energy market.

Source: https://energynewsafrica.com