Shell has completed its latest offshore drilling campaign in Namibia, bringing another phase of exploration to a close in one of the world’s most closely watched emerging oil regions.
The company’s Deepsea Mira semi-submersible rig finished its contract on July 2 after starting operations in April. Rig owner Northern Ocean confirmed that Shell chose not to exercise its option for a second exploration well.
The rig is now heading to Walvis Bay for planned upgrades before re-entering the international offshore drilling market.
Northern Ocean said the campaign generated about $31 million in revenue. The company also expects to secure a new contract for the rig before the end of the year as demand for advanced offshore drilling units remains strong.
Shell’s decision not to drill a second well under the current contract does not signal a withdrawal from Namibia.
Last month, the company reported positive results from its Merlin-1X exploration well in Petroleum Exploration License (PEL) 39, describing it as the strongest subsurface result recorded in the block to date.
The well encountered light oil with much lower associated gas than earlier discoveries, strengthening Shell’s confidence in the commercial potential of the license. The company is also considering additional drilling later this year as it continues assessing the acreage.
The latest results represent a notable step forward for Shell following earlier challenges.
In 2025, the company recorded a $400 million impairment on parts of its Namibia portfolio after determining that discoveries such as Graff and Jonker faced commercial hurdles because of complex geology and higher-than-expected gas content.
Instead of stepping back from the basin, Shell has continued drilling and improving its understanding of the resource as it works to identify commercially viable development opportunities.
source: africa.businessinsider.com
African Energy Council