Shell to start new drilling in Namibia’s Orange Basin in 2026

By InstinctBusiness Aug 19, 20250

Shell is set to launch a new exploration drilling campaign in Namibia’s Orange Basin in 2026, targeting commercial oil volumes in the geologically complex Petroleum Exploration Licence (PEL) 39, according to Eduardo Rodriguez, Shell’s country chair.

The announcement signals a renewed push by the supermajor to unlock the region’s potential despite previous setbacks.

Rodriguez emphasized the need for “trust” and “open dialogue” between upstream companies and Namibia’s new government, which assumed office in March 2025, to address the challenges of developing oil and gas in this frontier play. The Orange Basin, known for its geological complexity, has posed significant hurdles for commercial extraction.

Earlier this year, Shell reported multiple oil discoveries in PEL 39, including Graff and Jonker. However, none were deemed economically viable, leading to a substantial write-off. The 2026 drilling drive reflects Shell’s determination to refine its approach and identify commercially sustainable reserves in the region.

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The initiative underscores Namibia’s growing importance in global energy exploration, with Shell aiming to collaborate closely with the government to navigate regulatory and technical challenges. Industry analysts view this as a critical step for both Shell and Namibia to establish the Orange Basin as a viable oil-producing region.