Breaking: Shell confirms light oil offshore Namibia

4th February 2022

Shell and Namcor have announced a light oil discovery at the Graff-1, offshore Namibia.

Shell drilled the well, finding crude in the primary and secondary targets. The company used the Valaris DS-10 rig.

“Results from our exploration well are encouraging, establishing the presence of a working petroleum system with light oil,” said a Shell representative.

“We’ll continue evaluating the data and conduct further exploration activity to determine the extent of the system and how much of the hydrocarbons can be recovered.”

Namcor managing director Immanuel Mulunga welcomed the news.

We hope that this discovery puts to rest doubts about the hydrocarbon potential of Namibia and opens a new dawn in the country’s future prosperity.”

Shell is the operator with a 45% stake, while Qatar Energy (QE) has 45%. Namcor has the remaining 10%.

Drilling began on the well in early December 2021 and have recently completed, Namcor said. The well reached a total depth of 5,376 metres.

More work ahead

In the next months, the partners will carry out “extensive laboratory analyses”, it said. This will provide “a better understanding of the reservoir quality and potential flow rates achievable”, Namcor said.

The Graff well will provide “a great deal” of information, it said. However, “we anticipate that further exploration activity, including a second exploration well, will be required”, the Namibian company said.

This will “determine the size and recoverable potential of the identified hydrocarbons”.

Shell drilled the well, on Block 2913A, in around 2,000 metres of water.

QE president and CEO Saad Sherida Al-Kaabi said the results were encouraging. “We look forward to continuing our collaboration with the government of Namibia on the next steps, following this discovery.”

The Namibian Ministry of Mines and Energy has not yet issued a comment on the discovery.

Welligence vice president David Thomson described the news as “very positive”, both for the partners in the well and those nearby.

“That said, there is obviously testing and further drilling required so we should be still be a little cautious. A working hydrocarbon system doesn’t mean commerciality. Even with light oil, I think Shell will be wanting at least 300 million barrels for a development to proceed. So this is a significant step in the right direction but there is a long way to go.”

TotalEnergies is also drilling a well offshore Namibia. The Venus-1 well is targeting a separate play type. The French company has not provided insight into its well as yet.

SOURCE:  Energy Voice(Orginally published on 4th February 2022)