Staff Reporter
WINDHOEK, Nov. 3 — Shell is set to embark on drilling two additional wells in Namibia within the next 6 to 9 months, according to CEO Wael Sawan. The decision is based on promising data that indicates the potential for a new oil basin in this southern African nation.
Sawan disclosed that Shell’s upcoming activities in Namibia involve drilling one exploration well, one appraisal well, and conducting a flow test at its offshore exploration licenses in the region. He stated, “There is a lot of encouraging data that we have identified,” during a call with analysts.
In recent years, both Shell and France’s TotalEnergies have made a series of promising discoveries in Namibia. Despite these positive findings, Namibia is yet to commence oil and gas production.
Sawan also revealed that Shell is dedicating approximately a quarter of its deepwater exploration budget to Namibia, with the company’s overall exploration budget amounting to around $1 billion.
This development comes at a time when oil and gas companies are increasingly seeking new regions for exploration and production, as existing fields mature and decline. Namibia is considered a particularly promising frontier basin, attracting significant investments from multiple industry players.
The potential development of a new oil basin in Namibia holds the promise of significant economic growth for the country, with the potential to create jobs and generate revenue. Moreover, it could reduce Namibia’s dependence on imported oil and gas.
Nevertheless, concerns regarding the environmental impact of oil and gas activities, especially in offshore environments, have been raised. Shell has affirmed its commitment to operating safely and responsibly in Namibia, pledging to collaborate closely with the government and other stakeholders to mitigate any environmental effects.
In summary, Shell’s plans to drill two additional wells in Namibia represent a positive development for the country and the oil and gas industry as a whole. It signals Namibia’s potential to emerge as a significant oil producer in the coming years.
