UK major Shell is preparing to spud a well in the first month of the second quarter of 2026, in Petroleum Exploration Licence 39 offshore Namibia, marking a dramatic return after pausing operations following a major financial setback.
Eduardo Rodriguez, the company’s country chair, confirmed that drilling is scheduled to start in April 2026 with the 2018-built Deepsea Mira rig, owned by Northern Ocean and operated by Odfjell Drilling. The engagement is for one firm well and one optional well, with an estimated duration of 45 days for the firm well and a projected firm backlog of approximately $16 million.
Shell has drilled nine exploration wells on the PEL39, located approximately 230 kilometers offshore Oranjemud, covering an area of around 12,000 square kilometers. The company made a discovery of light oil and gas with Graff-1 in 2021 and subsequently drilled La Rona-1X, Jonker-1X, Graff-1A, Lesedi-1X, Cullinan-1X, Jonker-1A, Jonker-2A, and Enigma-1X between 2021 and 2024.
Shell paused its Namibian drilling campaign in January 2025 after announcing a $400 million write-down on PEL 39, due to technical and geological difficulties, including reservoir quality issues, determining that the discoveries in some of the drilled wells were not commercially viable for development at that stage.
By the third quarter of 2025, Shell began making announcements that Namibia had returned to its radar. Rodriguez announced in the second week of December 2025 that the company’s focus remains on operational excellence, safety, environmental performance, and creating opportunities for local participation. He expressed the company’s commitment to working with QatarEnergy, NAMCOR and the Government of Namibia to deliver shared value for the country and its people.
Shell operates the block with a 45% interest, alongside partners QatarEnergy (45%) and the National Petroleum Corporation of Namibia (10%).
In a related development, Shell has also secured a major offshore expansion in South Africa’s Orange Basin with a farm-in agreement granting Shell Offshore a 60% operating stake in Block 2C, according to a company document reviewed by Reuters.
Under the agreement, Shell will pay a $25 million signing bonus and cover $135 to $150 million for a three-well exploration program, effectively carrying PetroSA through the initial drilling phase. PetroSA currently holds 100% of Block 2C, but the transfer of interest is still subject to approval by the Petroleum Agency of South Africa.
The Orange Basin, located along the maritime border between South Africa and Namibia, has become a leading exploration hotspot following several major discoveries in Namibia by TotalEnergies and Shell. The transaction aligns with Shell’s broader strategy to expand offshore exploration along South Africa’s western coast.
However, environmental groups have filed legal challenges that have delayed these projects. Shell is also appealing a high court ruling that blocked seismic surveys in Block 5/6/7, following concerns that community consultations were inadequate.
Source: energycapitalpower.com, africaoilgasreport.com, angolanminingoilandgas.com