Phoenix Rising: Shell’s Stunning Comeback After $400 Million Namibian Oil Nightmare
Shell is preparing to resume oil exploration activities in Namibian waters next year, months after surprising industry observers with a $400 million write-down on its key Orange Basin oil discoveries.
The British oil major’s Graff discovery, alongside TotalEnergies’ Venus find, transformed the Namibian offshore landscape in 2022, attracting an influx of international oil companies and drawing comparisons to oil newcomer Guyana. However, Shell wrote down its PEL 39 license in January after encountering challenges with resource mobility, permeability issues, and high gas-to-oil ratios.
A Shell spokesperson confirmed that the company, along with its partners, is progressing plans to conduct further exploration drilling activity in PEL 039 during 2026. Shell holds a 45% operating stake in PEL 39, while QatarEnergy holds 45% and the National Petroleum Corporation of Namibia holds 10%.
New exploration efforts would support Namibian officials’ timeline to achieve first oil by 2030. The country estimates it could hold over 11 billion barrels of oil equivalent in potential resources, though recent setbacks have tempered some optimism around the emerging oil sector.
Source: The Namibian
