Namcor awaiting Shell drilling results
13 January 2022 | Local News
State-owned petroleum company Namcor says it is awaiting the results of ongoing oil exploration in the Orange-Basin south of Namibia, adding that it should know whether its partners Shell and QatarEnergies have struck black gold by the end of this month.
This follows reports in oil and gas magazine Upstream that Shell had made a big discovery in the Graff-1 well that could lead to a rush for oil in the Orange-Basin.
Namcor CEO Immanuel Mulunga said neither of the three companies with stakes in the well had commented on the findings officially as drilling was still ongoing.
“We cannot verify what has been said. We will know by the end of January,” Mulunga told Namibian Sun.
Upstream reported this week that Shell hit oil in its high-profile Graff-1 wildcat offshore Namibia that is targeting a billion barrels of potential reserves, according to well-placed exploration sources.
Probable big find
“They are still logging from what I have heard, so more will only be known towards the end of the week,” the knowledgeable source said. Another well-watcher urged caution about talk that Shell may have a big discovery on its hands, pointing out the probe has not reached target depth yet and the company will not have the full suite of information required to assess whether there is an economically viable discovery. “I would be slightly wary of words like commercial,” he said, while stressing “there is some credibility… that there is light oil there.”
Shell announced in December that it commenced exploration activities in Namibia. Shell and QatarEnergies both hold a 45% stake in the project while Namcor holds the remaining 10%.