Shell says it remains committed to offshore exploration in Namibia, as industry stakeholders raise concerns over local exclusion and long-term investment conditions.
The company says it will continue exploring in Namibia through PEL 39 in 2026.
“This activity reflects Shell’s continued commitment to responsibly exploring Namibia’s offshore potential in close partnership with QatarEnergy and the National Petroleum Corporation of Namibia (Namcor),” Shell says.
Shell chief executive Wael Sawan says the company has wells for the next six to 12 months.
“We also selectively look at opportunities, and of course we have Namibia. There we are looking at what others are doing, continuing to learn and positioning ourselves in case something interesting comes up.
“Therefore, our exploration portfolio is getting rounded into a better place,” he says.
Namibian Association for Offshore Oil and Gas Service Providers chairperson Knowledge Ipinge says due to high-risk investment involved in exploration, international oil companies prioritise careful risk assessments.
“A risk assessment for international oil companies is paramount for successful exploration portfolio management. From that perspective, I understand where they’re coming from. And this is nothing unique to Namibia,” he says.
Ipinge says the previously announced US$400 million write-down by Shell was an accounting adjustment to reflect the fair market value of its assets, not an indication that Namibia can’t attract long-term investment.
He says attracting long-term investment depends on factors like making sites commercially viable, the cost of technology, and stable government policies.
Ipinge says the current bidding processes in the oil and gas sector sideline local companies which “still end up doing the job” through subcontracting.
“Realistically speaking, local companies are busy facing a neocolonial exploitation through these Organisation of Petroleum-Exporting Countries’ bidding processes, which are mainly led by foreign monopolies.
“This is done systematically to sideline Namibian companies, or only to onboard them as subcontractors, mainly through preferred service providers,” he says.
Ipinge says the organisation is currently lobbying the government to turn existing policies into legally binding laws.
This includes pushing for a model agreement to ensure a minimum 20% annual growth rate for local companies in permanent contracts, which would also create apprenticeship and training opportunities.
“We are busy lobbying the government to introduce what’s called a model agreement on the division of responsibilities between the operators, which are mostly the international oil companies, and then the contractor companies, which are the service providers,” Ipinge says.
Shell operates the PEL 39 licence off Namibia’s southern coast, which covers 12 000 square kilometres.
