Shell Downgrades Namibia in Global Exploration Strategy Reset
Shell has signaled a strategic shift away from Namibian exploration activities as the energy giant adopts a more cautious and selective global approach to new investments. Chief Executive Wael Sawan confirmed that while Shell continues monitoring developments in Namibia’s oil sector, the country no longer ranks among the company’s top priorities for exploration spending.
The Anglo-Dutch major has refocused its exploration efforts on areas where it maintains existing assets and proven track records, including the Gulf of Mexico, Malaysia, and Oman. This strategic realignment follows a comprehensive reset of Shell’s exploration department capabilities after acknowledging that previous efforts haven’t delivered expected results.
Shell operates the PEL 39 licence off Namibia’s southern coast, covering 12,000 square kilometres, alongside partners QatarEnergy (45%) and Namcor (10%). Since the Graff-1X discovery in 2022, the company has drilled nine wells including Graff, Jonker, and La Rona, with some encountering hydrocarbons but facing technical and geological challenges preventing commercial viability confirmation.
The company has already written down approximately $400 million related to one discovery, reflecting the challenging nature of Namibian offshore exploration. Despite the strategic deprioritization, Shell anticipates results from upcoming wells in the next six to twelve months.
Source: namibian.com.na
