Despite encountering hydrocarbons in several wells drilled since the initial Graff-1X discovery in 2022, Shell deemed the current discoveries commercially unviable in the short term.
This decision, while significant, does not dampen the overall optimism surrounding Namibia’s oil and gas sector. Several major players remain active in the region, continuing exploration and development efforts.
TotalEnergies is advancing its exploration campaign on Block 2913B, with plans to make an investment decision in 2025 and initiate production by 2029. Galp is also progressing with the development of the Mopane complex following promising discoveries in 2024. Additionally, Rhino Resources, in collaboration with Azule Energy, is actively drilling in PEL 85.
Chevron, after acquiring a majority stake in PEL 82, is actively exploring the Walvis Basin, while Woodside Energy recently secured rights to 3D seismic data in PEL 87, further demonstrating the industry’s continued interest in Namibia’s offshore potential.
Minister of Mines and Energy, Tom Alweendo, emphasized that Shell’s writedown does not diminish Namibia’s long-term oil and gas prospects. “We have only scratched the surface of the country’s offshore resources,” he stated, reiterating the government’s confidence in the continued success of the country’s oil and gas exploration and development plans.
ARD/ac/Sf/fss/abj/APA