Shell Plc is set to announce its decision regarding its investment in Namibia’s oil and gas sector in the coming months.
Shell CEO Wael Sawan confirmed that the company is currently assessing its options in the region.
“At this stage, we haven’t yet reached a conclusion, but we hope to do so in the coming months,” Sawan said.
Sawan highlighted the advantages of collaborating in the new basin, noting that this collaborative environment is crucial as Shell evaluates the complex geological characteristics of its acreage.
“We are indeed privileged in a new basin like that to have so many players and the ability to learn from others. We’re not having to de-risk it on our own dime,” he said.
While recognising the significant resource potential in Namibia, Sawan also pointed out the challenges.
“It is universally agreed that there is a significant amount of resources there… However, I believe it’s fair to say… this is a very challenging acreage, particularly concerning the mobility of the resource, the permeability, and so forth,” he said.
The CEO emphasised the company’s high investment standards, explaining, Shell’s investment bar is high, “and if a project cannot meet our criteria, we won’t invest in it.”
As Shell continues its evaluations, industry stakeholders are keenly awaiting the final decision, which is expected to influence the future of resource exploration in Namibia.
This comes as Shell last year 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, where the well was drilled to a depth of 6,168 meters in water, which was 2,210 metres deep.
In April 2024, Shell completed its latest deepwater drilling effort offshore Namibia, confirming the presence of hydrocarbons.
The Enigma-1X probe, operated under Petroleum Exploration Licence 39, is currently being drilled by Northern Ocean’s semi-submersible rig, Deepsea Bollsta, which is managed by Odfjell Drilling.
Meanwhile, Northern Offshore’s semi-submersible rig, Deepsea Bollsta, is drilling an appraisal well on the Jonker field.
The Jonker-1A appraisal well, which spudded in late August, could potentially be the first field to be tapped by Shell.
Jonker-1A is being drilled more than 22 kilometres northwest of the Jonker-1 probe, indicating the potential size of the discovery.
Jonker is estimated to hold about 2.5 billion barrels of oil in place, according to NAMCOR. Namibia is optimistic about the future economic prospects of the country following the discovery of oil by Qatar Energy, Shell, and Total Energies in the Orange Basin, offshore Namibia.
