The Ministry of Mines and Energy says Shell’s US$400-million oil exploration write-off will not derail Namibia’s oil aspirations.
According to the ministry, Shell will continue to explore potential commercial pathways to development, while actively looking for further exploration opportunities in PEL39.
“The ministry emphasises that Shell’s decision to write down the discoveries will not significantly impact Namibia’s oil and gas development,” the ministry says.
It says other discoveries are commercially more feasible, and exploration will continue.
“The Mopane complex in PEL83 alone has been cited as having the potential to contain significant volumes of hydrocarbons,” the ministry says.
Additionally, Rhino Resources, in partnership with Azule Energy, the National Petroleum Corporation of Namibia and Korres Investments are busy drilling the first of two high-impact wells, the ministry says.
Minister of mines and energy Tom Alweendo says the government will continue to work towards making Namibia’s oil dreams a reality.
“We remain confident that ongoing exploration efforts will reveal commercial opportunities, and we look forward to delivering the first oil production in the near future,” he says.
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