Namibia’s Minister of Mines and Energy, Tom Alweendo, has downplayed the impact of Shell’s announcement that discoveries in Petroleum Exploration License (PEL) 39 are not viable for commercial development.
Shell determined that the oil discoveries were not commercially viable, leading to a projected write-down of around US$400 million. While acknowledging the setback, Alweendo emphasized the broader potential of the country’s oil and gas sector.
“We are positive that the remaining potential of PEL 39 and other exploration campaigns that are currently underway will translate into commercial developments,” Alweendo stated in a Jan. 9 LinkedIn statement.
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He highlighted ongoing efforts by other operators, including TotalEnergies, which is advancing its appraisal and exploration campaign in Block 2913B (PEL 56). Alweendo also noted Galp’s search for a partner in the Mopane complex following discoveries at Mopane-1X and Mopane-2A in 2024, and Chevron’s drilling at the Kapana 1X well in PEL 90 with joint venture partners Namcor and Trago.
“These investments signal a strong commitment by leading international oil companies to unlock the full potential of Namibia’s offshore acreage,” Alweendo said. “We believe that we have barely begun to scratch the surface of the country’s offshore resources and look forward to delivering first oil production in the near future.”
NJ Ayuk, Executive Chairman of the African Energy Chamber, echoed this optimism. Addressing Shell’s decision, Ayuk said, “While stakeholders deem this as a ‘blow to the country,’ the African Energy Chamber considers this merely a speed bump in Namibia’s oil development rather than a roadblock.”
Ayuk pointed to Namibia’s vast offshore acreage, particularly in the Orange Basin, as evidence of untapped potential. “Exploration in these blocks is ongoing, and discoveries may need to be tied in with other finds within the basin. It’s worth noting that these blocks are massive, spanning up to 10,000 square kilometers – larger than some countries.”
He praised Namibia’s government for fostering a stable investment climate, “Namibia still offers significant potential, and its oil and gas story is still unfolding. There’s so much more to come.”
Namibia is often compared to Guyana for having a similar evolution of discoveries.
Westwood had also named Guyana and Namibia among oil exploration and production jurisdictions where high-impact exploration has proven successful.
