Search for oil
Wonder Guchu
WINDHOEK
Oil exploration off Namibia’s shores has long been a high-stakes pursuit, with each well representing tens – and sometimes hundreds – of millions of US dollars in investment.Industry data compiled from public disclosures, investor presentations and cost models suggests that international oil companies have invested an estimated US$2.56–5.12 billion (N$46.08–92.16 billion) in offshore drilling since 1974.
A UK-based consultancy, Westwood Global Energy Group, estimated that late-2021 day rates for deepwater rigs in Namibia were around US$200 000 (N$3.6 million). Both Westwood and Offshore Magazine later revised this to an average of US$365 000 (N$6.57 million) per day, with recent fixtures hitting US$410 000 (N$7.38 million) since 2022.
According to oilfield services provider SLB, when marine support, fuel, drilling fluids, helicopters, logistics, and third-party services are added, total daily costs rise to US$700 000–900 000 (N$12.6–16.2 million).
Most ultra-deepwater wells in the Orange Basin require 55–90 days to drill. Rhino Resources, for example, has recently planned wells at about 55 days.
That means a single well can incur US$40–80 million (N$720 million–1.44 billion) in time-dependent costs before factoring in casing, tubulars, logging, testing, mobilisation, demobilisation, and insurance. These extras often push total well costs into the US$80–150 million (N$1.44–2.7 billion) range, according to Africa Intelligence and Offshore Magazine.
Figures from the US Energy Information Administration indicate that around 60% of a well’s cost lies in drilling – rig hire, consumables and marine services – with less than 40% in completion and testing. Many exploration wells are temporarily abandoned rather than fully completed, further concentrating spending in the drilling phase.
How many wells – and what cost?
By October 2023, Namibia had drilled “more than 36” offshore wells since 1974. Since then, at least seven more have been completed: Galp’s Mopane-2X and Mopane-3X (November 2023 and January 2025), Rhino’s Sagittarius-1X, Capricornus-1X and Volans-1X (December 2024 to July 2025), and two TotalEnergies prospects spudded in February 2025.
This brings the count to roughly 43 wells.
A Financial Times analysis in March 2024 noted that 17 pure exploration wells had been drilled since February 2022, with a high success rate. Using those numbers, Namibia’s offshore drilling history can be split into three cost eras:
Around 19 wells drilled at US$30–80 million each (N$540 million–1.44 billion), totalling US$0.57–1.52 billion (N$10.26–27.36 billion). ECO Atlantic data suggests a midpoint of US$0.95 billion (N$17.1 billion).
Seventeen wells drilled at US$80–150 million each (N$1.44–2.7 billion), totalling US$1.36–2.55 billion (N$24.48–45.9 billion), with a midpoint of US$1.96 billion (N$35.28 billion).
About seven wells drilled at US$90–150 million each (N$1.62–2.7 billion), totalling US$0.63–1.05 billion (N$11.34–18.9 billion), with a midpoint of US$0.84 billion (N$15.12 billion).
The big picture
Across all eras, total investment falls between US$2.56 billion (N$46.08 billion) and US$5.12 billion (N$92.16 billion), with a midpoint of US$3.75 billion (N$67.5 billion). This aligns with Namibia’s recent deepwater economics – US$365–410k/day (N$6.57–7.38 million/day), doubled for full operating spread and multiplied by 55–90-day drilling campaigns.
As noted by Westwood, Offshore Magazine and industry cost glossaries, variations in water depth, testing scope, sidetracks, weather delays and rig market rates can dramatically shift final figures. In Namibia, deeper wells and larger discoveries drive an even steeper investment curve – and higher stakes.
Shell’s experience in Namibia highlights the scale of commitment. While the company has not disclosed per-well costs, it recorded a US$400 million (N$7.2 billion) write-off in Q4 2024 tied to its PEL 39 block, where it drilled nine wells in three years.
Given Shell’s 45% stake in the block, the impairment works out to roughly US$44.4 million (N$799.2 million) per well for Shell’s share. Extrapolated to the full joint venture, the implied total is about US$889 million (N$16.002 billion) – or roughly US$99 million (N$1.782 billion) per well.
This falls squarely within Namibia’s typical ultra-deepwater cost range of US$80–150 million (N$1.44–2.7 billion) per well.
WINDHOEK
Oil exploration off Namibia’s shores has long been a high-stakes pursuit, with each well representing tens – and sometimes hundreds – of millions of US dollars in investment.Industry data compiled from public disclosures, investor presentations and cost models suggests that international oil companies have invested an estimated US$2.56–5.12 billion (N$46.08–92.16 billion) in offshore drilling since 1974.
A UK-based consultancy, Westwood Global Energy Group, estimated that late-2021 day rates for deepwater rigs in Namibia were around US$200 000 (N$3.6 million). Both Westwood and Offshore Magazine later revised this to an average of US$365 000 (N$6.57 million) per day, with recent fixtures hitting US$410 000 (N$7.38 million) since 2022.
According to oilfield services provider SLB, when marine support, fuel, drilling fluids, helicopters, logistics, and third-party services are added, total daily costs rise to US$700 000–900 000 (N$12.6–16.2 million).
Most ultra-deepwater wells in the Orange Basin require 55–90 days to drill. Rhino Resources, for example, has recently planned wells at about 55 days.
That means a single well can incur US$40–80 million (N$720 million–1.44 billion) in time-dependent costs before factoring in casing, tubulars, logging, testing, mobilisation, demobilisation, and insurance. These extras often push total well costs into the US$80–150 million (N$1.44–2.7 billion) range, according to Africa Intelligence and Offshore Magazine.
Figures from the US Energy Information Administration indicate that around 60% of a well’s cost lies in drilling – rig hire, consumables and marine services – with less than 40% in completion and testing. Many exploration wells are temporarily abandoned rather than fully completed, further concentrating spending in the drilling phase.
How many wells – and what cost?
By October 2023, Namibia had drilled “more than 36” offshore wells since 1974. Since then, at least seven more have been completed: Galp’s Mopane-2X and Mopane-3X (November 2023 and January 2025), Rhino’s Sagittarius-1X, Capricornus-1X and Volans-1X (December 2024 to July 2025), and two TotalEnergies prospects spudded in February 2025.
This brings the count to roughly 43 wells.
A Financial Times analysis in March 2024 noted that 17 pure exploration wells had been drilled since February 2022, with a high success rate. Using those numbers, Namibia’s offshore drilling history can be split into three cost eras:
Around 19 wells drilled at US$30–80 million each (N$540 million–1.44 billion), totalling US$0.57–1.52 billion (N$10.26–27.36 billion). ECO Atlantic data suggests a midpoint of US$0.95 billion (N$17.1 billion).
Seventeen wells drilled at US$80–150 million each (N$1.44–2.7 billion), totalling US$1.36–2.55 billion (N$24.48–45.9 billion), with a midpoint of US$1.96 billion (N$35.28 billion).
About seven wells drilled at US$90–150 million each (N$1.62–2.7 billion), totalling US$0.63–1.05 billion (N$11.34–18.9 billion), with a midpoint of US$0.84 billion (N$15.12 billion).
The big picture
Across all eras, total investment falls between US$2.56 billion (N$46.08 billion) and US$5.12 billion (N$92.16 billion), with a midpoint of US$3.75 billion (N$67.5 billion). This aligns with Namibia’s recent deepwater economics – US$365–410k/day (N$6.57–7.38 million/day), doubled for full operating spread and multiplied by 55–90-day drilling campaigns.
As noted by Westwood, Offshore Magazine and industry cost glossaries, variations in water depth, testing scope, sidetracks, weather delays and rig market rates can dramatically shift final figures. In Namibia, deeper wells and larger discoveries drive an even steeper investment curve – and higher stakes.
Shell’s experience in Namibia highlights the scale of commitment. While the company has not disclosed per-well costs, it recorded a US$400 million (N$7.2 billion) write-off in Q4 2024 tied to its PEL 39 block, where it drilled nine wells in three years.
Given Shell’s 45% stake in the block, the impairment works out to roughly US$44.4 million (N$799.2 million) per well for Shell’s share. Extrapolated to the full joint venture, the implied total is about US$889 million (N$16.002 billion) – or roughly US$99 million (N$1.782 billion) per well.
This falls squarely within Namibia’s typical ultra-deepwater cost range of US$80–150 million (N$1.44–2.7 billion) per well.
Comments
Namibian Sun
No comments have been left on this article