The energy major’s Deepsea Mira semi-submersible rig completed its contract on July 2 after beginning operations in April, with owner Northern Ocean confirming that Shell did not exercise its option for a second exploration well.
The rig is now being demobilised to Walvis Bay for planned upgrades before returning to the international market.
The campaign generated approximately $31 million in revenue for Northern Ocean, which says it expects to secure a new contract for the rig before the end of the year as demand for high-specification offshore drilling units remains strong.
Shell isn’t leaving Namibia
Shell’s decision not to proceed with a second well under this contract should not be interpreted as a retreat from Namibia.
Only last month, the company announced encouraging results from its Merlin-1X exploration well in Petroleum Exploration Licence (PEL) 39, describing it as the most promising subsurface result recorded in the block so far.
The well encountered light oil with significantly lower associated gas than previous discoveries, improving Shell’s confidence in the commercial potential of the acreage. The company said additional drilling later this year remains under consideration as it continues evaluating the licence.
That marks an important shift for Shell after earlier setbacks.
In 2025, the company took a $400 million impairment on parts of its Namibia portfolio after concluding that discoveries including Graff and Jonker faced commercial challenges because of complex geology and higher-than-expected gas content.
Namibia’s offshore race is accelerating
Shell’s latest campaign comes as Namibia’s Orange Basin moves from exploration towards development.
TotalEnergies is advancing its Venus discovery towards a final investment decision in 2026, with first oil targeted around 2030. The French energy giant has described Venus as the project expected to open Namibia as a new oil-producing nation.
At the same time, TotalEnergies has strengthened its position by taking operatorship of the giant Mopane discovery from Portugal’s Galp, combining Namibia’s two largest offshore discoveries into what could become a major production hub. Partners plan to drill at least three appraisal wells over the next two years.
The basin has also attracted companies including Chevron, Petrobras, QatarEnergy and Rhino Resources, underlining growing confidence that Namibia could emerge as one of Africa’s next major oil producers before the end of the decade.
Source: Africabusinessinsider