KEY POINTS
- Shell will begin a new drilling campaign in Namibia’s PEL 39 block from April 2026, using the Deepsea Mira rig.
- The move follows a $400 million write-down but reflects renewed confidence in the Orange Basin’s potential.
- Namibia, which has yet to produce oil, is targeting first output by 2030 as exploration activity intensifies.
Shell is preparing to return to Namibia’s waters with a new exploration drive, setting April 2026 as the start date for a renewed drilling campaign in the PEL 39 block.
The move signals a fresh attempt by the energy major to unlock more value from the Orange Basin, one of the industry’s most closely watched frontiers.
The company’s Namibia country chair, Eduardo Rodriguez, disclosed the development in a LinkedIn post on Thursday, noting that Shell has now awarded the contract for the Deepsea Mira drilling unit. The rig is operated by Odfjell Drilling and owned by Northern Ocean, and will work alongside Shell’s long-standing partners, QatarEnergy and Namibia’s state-run Namcor.
Shell’s decision to circle back to PEL 39 comes barely a year after the company wrote down roughly $400 million following an oil discovery it eventually deemed commercially unviable. Despite that setback, the block has remained a point of strategic interest due to its position in the Orange Basin, which stretches into South African waters and has drawn sustained attention from explorers after earlier finds by Shell itself, TotalEnergies and Galp.
Orange Basin revival fuels renewed exploration confidence
The Orange Basin has emerged as one of the most dynamic exploration zones globally, with successive discoveries strengthening investor confidence in the region’s long-term potential. Although Namibia has yet to produce its first barrel of oil, the government has repeatedly stated that it is working toward a first commercial output target of 2030, supported by growing activity from international operators.
Shell’s new campaign underscores that optimism, hinting that the company sees further upside in the basin despite the commercial hurdles encountered previously. The forthcoming drilling programme is expected to provide fresh clarity on reservoir potential while helping to shape the future development strategy for the block.
For Namibia, each new exploration round adds momentum to its ambitions of becoming a significant player in Africa’s offshore oil landscape. As international firms continue to test the basin’s limits, the country remains hopeful that sustained exploration will eventually translate into large-scale investment, infrastructure development and long-awaited production.
