Shell Plans 2026 Offshore Drilling in Namibia’s Orange Basin to Unlock Oil Potential
Shell is set to begin 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 made several discoveries in the area, including Graff, La Rona, and Jonker. The upcoming program—though the exact number of wells is still to be finalized—aims to collect additional data to better evaluate the existing discoveries.
Shell considers this effort crucial for identifying prospects with higher oil potential before making any final investment decision.
Earlier in 2025, the company recorded a $400 million impairment charge on its PEL 39 assets after determining that the hydrocarbons discovered so far were commercially nonviable.
Technical and geological challenges, such as low rock permeability and high gas content, were cited as key obstacles to monetization.
Namibia’s offshore sector continues to attract significant interest, though projects are progressing at varying speeds.
TotalEnergies has delayed its investment decision on the Venus field until late 2026 after reducing its production forecast from 160,000 to 150,000 barrels per day earlier this year.
Meanwhile, Galp confirmed a new discovery at Mopane in February 2025 and has been seeking to sell up to half of its 80% stake since April 2024 to ease development costs, though the sale has yet to be finalized.
Analysts note that the basin’s high gas content remains a challenge for investors primarily focused on oil production.
For Shell, the outcomes of the 2026 drilling campaign will be pivotal in determining whether Namibia’s offshore resources can be transformed into commercial hydrocarbon production within the next decade.
In November 2024, former Petroleum and Mines Minister Tom Alweendo emphasized that Namibia’s oil and gas reserves are central to the country’s economic growth strategy, targeting up to 8% GDP growth within 10 years, compared with 3.7% in 2024, according to World Bank data.
