Oil major Shell is set to restart exploration activities off the Namibian coast next year, signaling renewed focus on the country’s budding oil industry. The company confirmed its plans in a statement to Platts on 18 August.

This decision follows a US$400 million write-down earlier this year on Shell’s Orange Basin discoveries, including the Graff and Jonker fields. These finds initially raised expectations for Namibia’s offshore sector, attracting international investment and drawing comparisons with Guyana’s oil surge.

Shell said it will work with partners QatarEnergy and Namcor to carry out more exploration drilling in its PEL 39 licence in 2026, aiming to better understand the basin’s potential while adhering to responsible exploration practices.

The block has faced challenges such as high gas-to-oil ratios, deepwater conditions, and resource mobility, which have complicated extraction and commercial viability. Still, the company’s return is likely to be welcomed by Namibian officials, who hope to see first oil by 2030.

Shell holds a 45% operating stake in PEL 39, with QatarEnergy holding another 45% and Namcor 10%. The Namibian government estimates offshore resources could exceed 11 billion barrels of oil equivalent, though setbacks like write-downs and dry wells have tempered earlier optimism.

Industry forecasts suggest Shell’s PEL 39 project could start production around 2033, after TotalEnergies’ Venus project and Rhino Resources and Azule’s PEL 85 development. A financial investment decision for Venus is expected in 2026, despite the high costs posed by deepwater operations.

Namibia continues to look to oil and gas as a potential economic boost, and Shell’s renewed exploration could strengthen the country’s energy prospects.