Namibia’s Mines and Power Ministry has downplayed the impression of power firm Shell current $400-million write-down on its offshore oil discoveries, stating that the nation it stays dedicated to creating its hydrocarbon discoveries.
“We’re devoted to progressing these alternatives with the suitable companion and proper funding dedication,” the federal government said on Friday, including that Shell’s choice to jot down down the discoveries wouldn’t considerably impression Namibia’s oil and gasoline growth.
Shell introduced the write-down following its dedication that the oil and gasoline sources in offshore block PEL39, found in 2022, usually are not at present viable for business growth owing to technical and geological difficulties in extracting the sources.
The corporate has been drilling 9 wells over the licence within the final three years.
Shell and its companions, QatarEnergy and Namibia’s nationwide oil firm Namcor, nonetheless continued to pursue additional exploration alternatives within the 12 000 km2 PEL39 licence space.
The Ministry of Mines and Power stated that whereas preliminary assessments of a few of the subsurface parameters indicated challenges associated to subsurface complexities and reservoir high quality, there was important potential for enchancment as exploration and technical evaluation continued.
It added that advances in know-how, coupled with extra geological and geophysical research, have been anticipated to supply deeper insights and unlock the total potential of those sources.
“We’re optimistic that the remaining potential of PEL39 and different exploration campaigns will translate into business developments. Shell’s discoveries in PEL39 signify simply a few of the many exploration milestones witnessed offshore Namibia since 2022,” the Ministry defined.
It identified that TotalEnergies, for instance, was making progress with a multi-well appraisal and exploration drilling marketing campaign in Block 2913B, which was inside licence quantity PEL56.
TotalEnergies plans to make a closing funding choice this 12 months, with first oil focused in 2029.
The Ministry additionally deems the Mopane complicated as one other promising alternative for hydrocarbon growth, as nicely discoveries inside the Walvis Basin.
“Whereas the Shell write-down is unlucky, the Ministry of Mines and Power imagine that we now have barely begun to scratch the floor of the nation’s offshore sources.”
The Ministry confirmed that authorities would proceed working with devoted firms to develop these sources, reveal extra business alternatives and delivering first oil manufacturing within the close to future.
