Shell has announced a new drilling campaign in the PEL 39 exploration block offshore Namibia, with operations slated to begin in April 2026. The project is a joint venture with QatarEnergy, which holds a 45 % participating interest, and Namibia’s national oil company Namcor, which holds 10 %. The partnership follows Shell’s strategy to pursue high‑potential, low‑cost offshore projects in the Orange Basin, a region that has recently yielded several large discoveries.
The decision to move forward with PEL 39 comes after a $400 million write‑down on an earlier Orange Basin discovery that was deemed commercially unviable. By leveraging the expertise of QatarEnergy and the local knowledge of Namcor, Shell aims to reduce risk and capitalize on the basin’s proven geology. The new campaign is part of Shell’s broader plan to add 1 million barrels of oil equivalent per day of production by 2030 while maintaining disciplined capital allocation.
Operationally, the campaign will use the Deepsea Mira drilling unit, operated by Odfjell Drilling. The contract covers one firm well and one optional well, with an estimated duration of 45 days for the firm well and a projected backlog of approximately $16 million. The rig’s deployment is expected to provide a cost‑efficient platform for evaluating the block’s prospects and potentially securing a commercial discovery.
Shell’s Namibia country chair, Eduardo Rodriguez, emphasized the company’s commitment to responsible exploration. “We are progressing plans to conduct further exploration drilling activity in PEL 039 during 2026 to continue evaluating the prospectivity,” he said. “This activity reflects Shell’s continued commitment to responsibly explore Namibia’s offshore potential in close partnership with QatarEnergy and Namcor.”
The announcement aligns with Namibia’s goal of achieving first oil by 2030 and underscores the growing interest in the Orange Basin. While the region presents geological challenges and the risk of commercial unviability, the potential rewards are significant. Shell’s focus on high‑potential, low‑cost projects positions it to capture value if the PEL 39 block proves productive, while the partnership structure helps mitigate financial and operational risks.
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