4.6 C
New York
Wednesday, April 24, 2024

Shell discovers 250-300 million Barrels of Crude Oil and Gas in Namibia

Date:

Share post:

Shell has found crude oil and gas resources estimated at 250-300 million barrels of oil and gas equivalent; after it started drilling the Graff-1 Well in Namibia’s waters in December, Sources say.

However, the Namibian Government is expected to make an announcementon the discovery in a couple of days.

Although Namibia does not produce oil and gas; the offshore area around the country is thought to hold a lot of resources; and analysts also believe it would be one of the top high-impact exploration hotspots this year. Angola, which is Namibia’s neighbor to the north is an OPEC producer and has a lot of offshore developments.Shell discovers 250-300 million Barrels of Crude Oil and Gas in Namibia

“Namibia is again under the spotlight as Shell bank on the highly anticipated Graff-1 to unlock frontier plays in the Orange Sub-basin,” Erik Meyer and Hugh Ewan, Senior Technical Research Analysts at IHS Markit, said in a note just after Shell spud the Graff-1 well in December.

“If successful, Graff-1 could spark significant international investment to a region which has had minimal E&P activity over the last 25 years,” they added.

Analysts have however stressed that a discovery has to be sizeable to be commercially viable. Shell is likely targeting at least 210 million barrels of recoverable resources, they said.

Shell in Namibia

According to Reuters’ sources, it is however not clear yet if Shell’s discovery is as big enough as to lead to a deepwater development offshore Namibia.

Deepwater plays, with highly productive reservoirs, including offshore Nambia; will be prioritized by large companies this year, Wood Mackenzie said last month. Giant prospects in Brazil, Guyana, Suriname, Namibia, and South Africa would be priorities for majors, while deepwater is likely to account for half of all new volumes, WoodMac said.

Shell holds a 45% stake in the offshore Petroleum Exploration License 39 (PEL 39); with a 45% interest held by Qatar Petroleum and a 10% held by the National Petroleum Corporation of Namibia (NAMCOR).

“We continue to safely execute Graff-1 operations.” A Shell spokesperson said.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Related articles

Africa’s Top 10 Countries with the Most Centi-Millionaires in 2024

In the ever-evolving economic landscape of Africa, the emergence of centi-millionaires marks a significant milestone in the continent's...

Niger Strikes Deal to Supply Mali With Cheaper Diesel

In a bid to alleviate power shortages plaguing its neighbor, Niger has inked a monumental deal with Mali,...

Top 5 Wealthiest African Cities: The Cities Shaping Africa’s Economy

African economic landscape is witnessing a transformation, marked by the rise of its high-net-worth population. A recent report...

Nigerian Authorities Pursue Legal Action Against Binance and Executives Over Alleged Money Laundering

Nigerian authorities have escalated legal action against cryptocurrency exchange Binance and two of its executives, accusing them of...