Shell and its partners QatarEnergy and NAMCOR have made an oil discovery at Petroleum Exploration Licence 0039 (PEL 0039) offshore Namibia following the drilling of the Merlin-1X exploration well.
The results contribute to ongoing assessments of the block in the Orange Basin.
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Shell serves as the operator of PEL 0039.
The Merlin-1X exploration well, which began drilling in April 2026, is the tenth to be drilled under the licence.
Shell exploration, strategy and portfolio executive vice-president Eugene Okpere said: “These are encouraging results that add to our understanding of the Orange Basin potential.
“We are progressing this opportunity through a disciplined, data-led approach to establish commerciality, focusing our investment on options that are material, competitive and resilient within our portfolio.
“This is built on strong partnership and alignment, and I thank the Government of the Republic of Namibia, our partners and all teams involved.”
The Merlin-1X well reached the Coniacian formation and encountered good reservoir quality with light oil and only limited associated gas. This result is considered an improvement compared to previous wells in the licence, according to Shell.
Furthermore, the findings represent the most favourable subsurface outcomes so far within this licence area.
Shell indicated that further drilling in PEL 0039 is being considered later in 2026 as part of a wider exploratory appraisal campaign.
Qatar Minister of State for Energy Affairs and QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “We are pleased with this discovery, which follows three earlier discovery announcements in Namibia.
“These results represent a significant step that further strengthens confidence in the Orange Basin as an emerging world-class hydrocarbon province and aligns with QatarEnergy’s strategy to expand its international upstream portfolio through high-impact exploration.
“We extend our appreciation to the Government of the Republic of Namibia for its continued support of this exploration effort, and we congratulate our partners, Shell and the National Petroleum Corporation of Namibia on this achievement.”
QatarEnergy currently holds interests in four offshore exploration licences in Namibia, including a 45% share in PEL 0039, as well as stakes in PEL 0056 (35.25%), PEL 0091 (33.03%) and PEL 0090 (27.5%). Together, these licences cover around 34,000km².
