Middle East

Shell makes “important” oil and gas

Shell has made significant oil and gas discoveries in Namibia’s carefully monitored offshore wells, which could trigger a wave of investment in countries in southern Africa, three industry sources told Reuters. ..

Namibia is not a fossil fuel producer, but Angola, to the north, is a major oil and gas producer and a member of the Organization of Petroleum Exporting Countries.

It is unclear if there is a discovery large enough for Shell to proceed with the development of the country’s first deep-sea field, sources said.

The Namibian government will announce next week details of the findings in the Graff-1 well, where Shell began drilling last month, two sources said.

Well results so far show at least two reservoirs, one of which has described as a significant amount of oil and gas.

According to the second source, the drilling results show one layer with a hydrocarbon depth of at least 60 meters, which is equivalent to an estimated 250-300 million barrels of oil and gas.

Shell holds a 45% stake in Offshore Petroleum Exploration License 39 (PEL 39), 45% in Qatar Oil and 10% in Namibia National Petroleum Corporation (NAMCOR).

“We will continue to safely perform Graff-1 operations,” said a Shell spokesman.

Namibian oil commissioner declined to comment.

This discovery occurs when Shell begins to curtail oil production as part of its plans to move to renewable energy and low-carbon fuels. However, the company may still choose to develop new areas to replenish its reserves and compensate for the decline in production elsewhere.

Developing new oil and gas fields in an existing energy infrastructure and unregulated country, similar to what happened in Guyana on the other side of the Atlantic in recent years, is timely and costly.

Namibia has been aiming to develop oil and gas fields for decades, but has not succeeded.

However, in recent years, its interest in offshore outlook has attracted many foreign companies, including ExxonMobil and TotalEnergies, following discoveries in neighboring South Africa, Brazil and Guyana that share geological similarities. I am.

Hugh Ewan, an analyst at IHS Markit, said after Shell began drilling Graff-1 in December, “If successful, Graff-1 has had minimal E & P exploration and production activity over the last 25 years. It can cause a large amount of international investment in the region. “

TotalEnergies began drilling the Venus 1 exploration well in December at Block 56 near a depth of 3,000 meters.

https://www.oedigital.com/news/493767-reuters-shell-makes-significant-oil-and-gas-discovery-offshore-namibia Shell makes “important” oil and gas

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