Tomorrow 4th February3 Feb 2022 15:35
GLOBAL oil and gas company, Royal Dutch Shell Plc (Shell), has reportedly made a massive oil discovery off the coast of Namibia worth an estimated N$334 billion.
But that value is only worthwhile if the quality is good and the companies involved agree to commercialise.
The discovery was reportedly made on the Petroleum Exploration Licence 39 (PEL 39), which is owned by Shell (45%) and Qatar Petroleum (45%), with the National Petroleum Corporation of Namibia (Namcor) owning the remaining 10%.
PEL 39 lies in the south-western part of the Kudu gas project and in the same region as the TotalEnergies and ExxonMobil licensed areas.
According to a Reuters report, the discovery at the Graff-1 well was made following drilling operations that began last month and which three sources with credible know-how on the drilling have confirmed.
The well results, as reported by Reuters, have shown at least two reservoirs containing what one of the sources described as a significant amount of oil and gas.
According to a second source, the drilling results have shown one layer at least 60 metres deep of hydrocarbons, holding an estimated 250 to 300 million barrels of oil and gas equivalent.
Estimated at current averages of US$88 per barrel, this adds up to a reservoir worth over U$29 billion, equivalent to N$334 billion at current prices.
Namcor managing director Immanuel Mulunga could not confirm nor deny the discovery yesterday, but told The Namibian that his company, the mines and energy ministry, as well as the two foreign entities, as owners of PEL 39, will make a joint statement on the results of the drilling on or before 4 February.
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