Shell Namibia says it will continue oil and gas exploration in the country despite technical and geological challenges that have delayed a clear path to commercial production.
Speaking at the Namibia Oil and Gas Conference, Shell Namibia Country Chair Eduardo Rodriguez said Namibia remains a priority in the company’s regional strategy.
“Yes, we have found oil, but we have also encountered some technical and geological challenges that, at this moment, prevent a clear pathway to commerciality. Nevertheless, this does not diminish our interest in the region,” he said.
Rodriguez said Shell drilled nine wells in its current campaign, six of them exploration wells, and conducted two well tests.
“It has been an amazing operational campaign, with most wells resulting in discoveries — you may have read the news,” he said.
Shell operates the PEL 39 licence off Namibia’s southern coast, covering 12,000 square kilometres. It holds a 45% stake alongside QatarEnergy with 45% and Namcor with 10%, and has written down about US$400 million related to one of its discoveries.
Earlier this month, Shell CEO Wael Sawan said the company would focus its investments more selectively, with priority given to areas where Shell already holds assets and has a proven track record, such as the Gulf of Mexico, Malaysia and Oman.
Last month, a Shell delegation led by Eugene Okpere, Executive Vice President for Exploration Strategy, Portfolio, Integrated Gas, and Upstream, met President Netumbo Nandi-Ndaitwah to discuss ongoing activities and future plans in Namibia’s oil exploration sector.
