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Home Oil & Gas

Shell Plc to explore South African offshore oil block near Namibia

editor by editor
July 10, 2024
in Oil & Gas
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Shell Plc plans to explore an offshore South African oil block located across the maritime border with Namibia, where a number of discoveries have been made.

The company expects to drill as many as five wells within the Northern Cape Ultra Deep license block, according to an online notice by SLR Consulting, which a Shell spokesperson confirmed by email.

The block is about 300 km offshore the west coast of South Africa in depths up to 3,200 meters.

Shell and TotalEnergies SE made oil and gas discoveries in Namibian waters north of the block starting in 2022. Additional finds have companies jostling for more acreage in and around the area.

Shell is the operator of the Northern Cape Ultra Deep block with 40.5%, Qatar Energy has 40.5%, Umbono 10%, and OK Energy with a 9% stake.

Some oil and gas exploration activity in South Africa by Shell and other companies has been blocked in recent years by environmental groups.

This comes as TotalEnergies SE reportedly plans to exit its discoveries of gas-condensate offshore South Africa to prioritize exploration in other areas closer to Namibia.

TotalEnergies plans to relinquish the license for Block 11B/12B because it doubts whether the complex deepwater finds can be made commercially viable, given South Africa’s small gas market.-M&E/Bloomberg

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