• Shell to drill 5 new exploration wells in Namibia’s PEL 39 block in 2026.
• Campaign aims to better assess existing finds Graff, La Rona, and Jonker.
• Technical challenges and high gas content complicate commercial viability.

Shell will launch a new drilling campaign in 2026 with five exploration wells in its PEL 39 offshore license in Namibia’s Orange Basin, according to reports from the oil and gas press on August 18, 2025. The company has already made several discoveries in the area, including Graff, La Rona, and Jonker.

The upcoming program, with final well numbers yet to be confirmed, is designed to gather more data to better define the existing finds. Shell considers this step essential to identify prospects with stronger oil potential before making a final investment decision.

Earlier this year, the company recorded an impairment charge of about $400 million on its PEL 39 investments, judging the hydrocarbons found so far to be commercially unviable. Industry reports said this decision was driven by technical and geological difficulties, including low rock permeability and high gas content, both of which complicate monetization.

The Namibian offshore sector is seeing rapid activity, though projects are progressing at different speeds. TotalEnergies postponed its investment decision on the Venus field to late 2026, after cutting its production outlook in February from 160,000 to 150,000 barrels per day.

Galp, which confirmed a new discovery at Mopane in February 2025, has been trying since April 2024 to sell up to half of its 80% stake to share development costs, but the process has yet to conclude. Analysts note that the basin’s high gas content remains a challenge for investors focused mainly on oil.

For Shell, the success of this new campaign will be key to determining Namibia’s ability to turn its offshore potential into real hydrocarbon production in the next decade.

In November 2024, then Minister of Petroleum and Mines Tom Alweendo said the country was counting on its oil and gas reserves to accelerate growth, targeting up to 8% within 10 years compared with 3.7% in 2024, according to the World Bank.