- Shell has reportedly made another significant discovery of hydrocarbons, the leading oil and gas components in the Orange Basin.
- The mines and energy minister Tom Alweendo reassured the people that discovering oil would not be a resource curse for Namibia.
Shell has reportedly made another significant discovery of hydrocarbons, the leading oil and gas components in the Orange Basin. Once confirmed, this will be Shell’s second significant discovery in the vicinity, where TotalEnergies also proved a major discovery of light crude last year.
However, validation of this latest find was not confirmed by the mines ministry as of this report. Also, Shell declined to comment on the status of its latest Orange Basin well. Meanwhile, to bolster its search activities in the exploration hotbed of the Orange Basin, Shell spent over N$2 billion to secure the services of the semi-submersible rig, called the Deepsea Bollsta, for a year, with an option to extend the services for another six months if necessary.
While the size of the latest well by Shell has not been confirmed, industry insiders estimated the company could achieve flow rates of 2 000 to 3 000 barrels per day. Industry experts do not expect Shell’s Jonker well to be in direct communication with the TotalEnergies’ Venus discovery. However, if the two discoveries overlap, then the oil majors will require a unitisation agreement.
This scenario could be a no-brainer; it could be easily achieved, considering that Qatar Energy is a partner in both discoveries. Industry experts believe the promise of the Graff and Venus wells has already triggered an increase in Orange Basin drilling activity. The mines and energy minister Tom Alweendo reassured the people that discovering oil would not be a resource curse for Namibia. There will be proper plans around the resource wealth on how the country can fully benefit from the natural resource.