×

We've got news for you.

Register on SowetanLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

Shell makes 'encouraging' oil discovery offshore Namibia

Royal Dutch Shell has been given the go-ahead to start seismic surveys off the Wild Coast.
Royal Dutch Shell has been given the go-ahead to start seismic surveys off the Wild Coast.
Image: Patrick van Katwijk/BSR Agency/Getty Images

Shell and its partners have made what the oil major described as an “encouraging” discovery in a closely-watched exploration well off the coast of Namibia, which could spark a wave of investment in the Southern African country.

Shell said in a statement that results from the deep water Graff-1 well revealed “the presence of a working petroleum system with light oil” and that Shell and its partners would continue to assess how much oil could be recovered.

Shell holds a 45% stake in the offshore Petroleum Exploration License 39 (PEL 39), where the well is located, with a 45% interest held by Qatar Petroleum and 10% held by the National Petroleum Corporation of Namibia (NAMCOR).

“We hope that this discovery puts to rest doubts about the hydrocarbon potential of Namibia and opens a new dawn in the country's future prosperity,” NAMCOR Managing Director Immanuel Mulunga said in a statement.

Reuters last week reported a discovery had been made at the well offshore Namibia, which currently does not produce any fossil fuel.

Reuters

Would you like to comment on this article or view other readers' comments? Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.