Shell says it has initiated critical flow tests on the Jonker-2A well in Namibia’s Orange Basin to assess the oil discovery’s size and reservoir quality.
Situated 23 kilometres from the discovery well, the Jonker-2A well was spudded in late November by the semi-submersible rig Deepsea Bollsta.
The flow tests, also known as drill stem tests, are vital for determining the size and characteristics of the reservoir.
The outcome of the tests will provide valuable insights that could shape Shell’s future investment decisions in the Orange Basin and potentially impact Namibia’s energy sector.
This follows Shell taking a cautious approach in developing its oil discoveries in Namibia due to the high-cost implication of the process.
“We will take our time and be thorough in the way we look through that because these are significant capital investments, and therefore we want to make sure that we are able to deliver returns for our shareholders,” Shell Chief Executive Officer Wael Sawan said at the company’s 2023 fourth quarter results presentation.
Sawan emphasised the oil major’s focused and strategic approach to oil exploration, highlighting the importance of identifying optimal drilling locations for lucrative opportunities.
He said Shell has already commenced drilling some exploration and appraisal wells, with plans to undertake additional drilling in the coming months.
“As I’ve said in the past, there’s no question about the volume of the resource. The biggest question is around finding the sweet spots within that resource, within the rock, to be able to create the opportunities for exciting developments there,” he said.
He said the prudent approach highlights Shell’s commitment to maximising value for its stakeholders while mitigating risks associated with capital-intensive ventures.
This comes after last year Shell cautioned that the first oil from its discovery in Namibia is unlikely before 2030.
Shell has made four significant discoveries in Namibia to date–Graff, La Rona, Lesedi, and Jonker well was drilled to a depth of 6,168 metres in water, which was 2,210 meters deep.
Northern Offshore’s semi-submersible rig, Deepsea Bollsta, is drilling an appraisal well on Jonker, which could be the first field to be tapped by Shell, with the Jonker-1A appraisal well having spudded in late August. Jonker-1A is being drilled more than 22 kilometres northwest of the Jonker-1 probe, indicating the potential size of the discovery.
