Zim Now Writer
Shell has announced a US$400 million write-down on its oil discovery in Namibia’s offshore block PEL39, citing technical and geological challenges that render the project commercially unviable.
The decision deals a blow to Namibia’s ambitions of becoming a significant oil producer, despite the country’s earlier discoveries sparking global interest.
Shell, in partnership with QatarEnergy and Namibia’s national oil company, first discovered hydrocarbons in the block in 2022. Since then, Shell has drilled multiple wells, uncovering more resources but facing difficulties in extracting them due to low rock permeability and a high natural gas content.
Namibia’s Ministry of Mines and Energy remains optimistic, stating that Shell’s decision does not mark a major setback for the country's oil ambitions. The ministry is confident that ongoing exploration in other blocks will lead to commercially viable developments.
Other energy firms, including TotalEnergies, Galp, Chevron, and Azule Energy, are planning exploration campaigns in Namibia this year, with TotalEnergies expected to decide on its Venus discovery by year-end.
Shell’s write-down forms part of a larger $700 million exploration write-off, which also includes assets in Colombia.
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