PETLONG DAKHLING

Shell plans to start a new drilling campaign in 2026, targeting five exploration wells in its PEL 39 offshore block in Namibia’s Orange Basin.

The company has already discovered several finds in the area, including Graff, La Rona, and Jonker.

This upcoming program, though final well numbers remain undecided, aims to collect more data to better outline the existing discoveries.

Shell views the effort as crucial for pinpointing prospects with stronger oil potential before making a final investment decision.

Earlier this year, the company booked a $400 million impairment charge on its PEL 39 assets after judging the hydrocarbons found so far as commercially nonviable.

Industry reports explained that technical and geological challenges such as low rock permeability and high gas content drove this decision and complicated monetization.

Namibia’s offshore sector continues to draw rapid activity, although projects are moving forward at different paces.

TotalEnergies delayed its investment decision on the Venus field until late 2026 after cutting its production outlook in February from 160,000 to 150,000 barrels per day.

Galp confirmed a new discovery at Mopane in February 2025 and has been seeking since April 2024 to sell up to half of its 80 percent stake to ease development costs, though the sale has not yet concluded.

Analysts highlight that the basin’s high gas content still poses difficulties for investors primarily focused on oil.

For Shell, the results of this new campaign will determine whether Namibia can convert its offshore potential into real hydrocarbon production within the next decade.

In November 2024, then Petroleum and Mines Minister Tom Alweendo stressed that the country relied on its oil and gas reserves to boost growth, setting a target of up to 8 percent within 10 years compared with 3.7 percent in 2024, according to World Bank figures

AFRICA ENERGY COUNCIL