Exploration

Shell CEO says that Namibia's acreage was 'very challenging'. (Image source: Adobe Stock)

The much anticipated petroleum exploration license-PEL39 offshore Namibia turned out to be a disappointment for Shell, as the company announced the discovery a write down of approximately US$400mn, reported Reuters 

Speaking about the discovery, the British oil major is reported to have said that the resources from the block 'cannot currently be confirmed for commercial development'. According to Shell CEO, Wael Sawan, Namibia's acreage was 'very challenging', with lower permeability of the rock making exploration difficult. The company is said to have faced wide ranging challenges in the technical and geological fronts, topped by high natural gas presence. Experts believe that having to deal with gas presence even before oil could be produced is no mean feat and requires costly engineering solutions. High gas presence at the beginning of production means once it fizzles out, reservoir pressure sees a sharp decline, rendering oil production a dicey job. 

'Not a setback'

'While we recognise that extracting the discovered resources presents challenges, the extensive data collected shows that there remain opportunities. Together with our partners, we are continuing to explore potential commercial pathways to development, while actively looking for further exploration opportunities in Namibia', read a statement from the company.

This comes as a discord as PEL39 has been very giving since 2022, when Shell and its partners, QatarEnergy and the National Petroleum Corporation of Namibia-NAMCOR made their first discovery in the region. Several others have followed as Shell drilled nine wells in the licence over the last three years. 

Growing global interests from exploration and production companies such as QatarEnergy, Chevron and Galp, to name a few, have set off a whole oil & gas ecosystem in the region, with tech giants Halliburton and Baker Hughes opening facilities, and high stakes logistics contracts coming into effect. 

"It is not a setback. We are positive that the remaining potential of PEL39 and other exploration campaigns will translate into commercial developments," said Namibia's Ministry of Mines and Energy in a statement on Shell's decision. 

A sale and purchase agreement is in place. (Image source: Adobe Stock)

Vantage Drilling International Ltd has created a joint venture entity with TotalEnergies called TEVA Ship Charter LLC

The entity have all definitive agreements executed to acquire the Tungsten Explorer rig, which is currently held under contract for operations in Congo. Once completed, a sale and purchase agreement has been put in place to take over the rig, besides a management agreement that allows Vantage its operation for 10 years with the option to extend for an additional five years.

Offshore drilling collaboration

Ihab Toma, CEO of Vantage Drilling, said, “We are proud to partner with TotalEnergies in this joint venture, marking a significant milestone for both companies. The creation of TEVA and the execution of all definitive agreements reinforce our shared commitment to value creation through collaboration and creative business models in offshore drilling. We look forward to leveraging our expertise to ensure the long-term success of this partnership.”

The company saw a 92% improvement in production efficiency in Q4 2024. (Image source: PetroNor)

PNGF Sud offshore Congo has generated the largest ever single lifting for PetroNor E&P ASA with an additional 881,192 barrels of oil, priced at US$72.817 per barrel 

The aggregated 2024 lifted and sold volumes are 1,795,460 bbls at an average realised price of US$77.85 per barrel. 

Increased production efficiency 

A bounce back since its last update, the company saw a 92% improvement in production efficiency in Q4 2024 following relatively low infrastructure challenges and a successful workover campaign. While workover requirements have gone down, PetroNor has plans for additional infill drilling activities to boost production.

 With mega projects such as Moho Nord and the Gas Master Plan, Congo's hydrocarbons industry continues to thrive. 

90,000 barrels per day is being targeted from Blocks 3 and 7. (Image source: Adobe Stock)

Dar Petroleum Company (DPOC) has resumed exploration activities in Blocks 3 and 7 in Upper Nile State, South Sudan, after a force majeure was lifted by the government and the Basher Pipeline Company (Bapco)

South Sudan's Minister of Petroleum, Puot Kang Chol, has revealed an initial output target for 90,000 barrels per day from the blocks. With almost 90% of the country's resources untapped, the national oil & gas company, Nile Petroleum Corporation is highly focused on drawing investments to boost the region's domestic as well as export market. 

Export activities

Export activities from South Sudan to Port Sudan on the Red Sea, which was under blockage for almost a year, will also resume following the announcement. 

In May last year, Wildcat Petroleum signed a memorandum of understanding with the Ministry of Petroleum to advance the development and commercial exploitation of the hydrocarbon assets in selected fields.