Shell has revised its exploration plans in Namibia after its latest offshore drilling campaign delivered stronger-than-expected results, prompting the company to move away from the cautious approach it adopted last year.
Chief Executive Wael Sawan announced the expanded appraisal drilling programme on the offshore PEL 39 licence in the Orange Basin during Shell’s second-quarter 2026 earnings presentation.
The decision marks a change from January 2025, when Shell wrote down its Namibian assets by $400 million after determining that discoveries on the licence were not commercially viable in the near term.
The company updated its outlook after drilling the Merlin-1X well, the tenth exploration well on the PEL 39 licence. Shell drilled the well in April alongside its partners, QatarEnergy and NAMCOR, Namibia’s national oil company.
Merlin-1X delivered the most promising exploration results recorded on the licence so far. The well encountered light crude oil with limited associated gas, improving on the previous nine wells, which were affected by poor reservoir permeability and higher gas content.
Sawan said the latest well stood out because of its reservoir quality and fluid characteristics. He noted that Merlin-1X recorded some of the best permeability and porosity seen across the block and opened a new exploration target for the company.
Shell has not disclosed how many appraisal wells it plans to drill or when the programme will begin. The company said it will carry out further appraisal drilling to assess the commercial potential of the newly identified resources.
source: www.ecofinagency.com
African Energy Council