Shell says its Merlin-1X exploration well offshore Namibia has delivered the most promising subsurface results recorded to date in Petroleum Exploration Licence No. 0039 (PEL 0039), strengthening the company’s assessment of the Orange Basin’s resource potential.
In a statement released on July 9, Shell, together with its partners QatarEnergy and the National Petroleum Corporation of Namibia (NAMCOR), said the well encountered a high-quality reservoir containing light oil with limited associated gas.
The Merlin-1X well was spudded on April 8 and is the 10th exploration well drilled within PEL 0039, which Shell operates.
“This [Merlin-1X exploration well] indicates good reservoir quality with light oil and limited associated gas, compared to prior results within the license. The results enhance Shell’s understanding of the basin and support continued evaluation of the resource and its commercial potential across the license,” the company said.
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Shell noted that, based on the results, it is considering additional drilling later this year as part of a broader appraisal program.
Eugene Okpere, Shell’s Executive Vice President for Exploration, Strategy and Portfolio, said the company remains focused on determining whether the discovery can support commercial development.
“These are encouraging results that add to our understanding of the Orange Basin potential. We are progressing this opportunity through a disciplined, data-led approach to establish commerciality, focusing our investment on options that are material, competitive and resilient within our portfolio,” Okpere said.
The result follows three earlier discovery announcements in Namibia. It also comes as major oil companies continue to test the Orange Basin’s commercial potential.
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In June, Minister of State for Energy Affairs, President and Chief Executive Officer of QatarEnergy, Saad Sherida Al-Kaabi stated that the well’s data “represent a significant step that further strengthens confidence in the Orange Basin as an emerging world-class hydrocarbon province and aligns with QatarEnergy’s strategy to expand its international upstream portfolio through high-impact exploration.”
QatarEnergy holds a 45% interest in PEL 0039.
