Namibia sets the stage for new offshore oil & gas licensing round and drilling plays

As oil and gas remain resilient in the face of multiple challenges, hydrocarbon exploration in the offshore energy arena continues across the globe. With multiple drilling campaigns poised to shape Africa’s energy future this year, the African Energy Chamber (AEC), which serves as the voice of the energy sector in Africa, has opted to shine a light on the offshore oil and gas drilling programs and licensing opportunities in Namibia.

African Energy Chamber has revealed that Maggy Shino, Namibia’s Petroleum Commissioner, disclosed upcoming offshore licensing opportunities and plans to drill seven wells this year during a webinar AEC hosted alongside Namibia’s Ministry of Mines and Energy and Wood Mackenzie on March 20, 2025.

As the country makes strides toward first oil production, Shino emphasized: “We are offering a sustainable operating environment, ensuring all discoveries are in a race to first oil while making a lasting impact on the local economy.”

According to the African Energy Chamber, the country’s offshore oil and gas scene will experience significant growth in 2025 by attracting fresh investment and cementing its status as one of the world’s most promising oil frontiers.

Even though an uptick in drilling activity is on the agenda in 2025, with seven wells on the horizon, Ian Thom, Research Director for Sub-Saharan Africa Upstream at Wood Mackenzie, highlighted: “The scale is enormous – there’s 220,000 square kilometers of offshore license acreage. With just over 20 exploration and appraisal wells drilled, this area is still hugely underexplored.”

While BW Energy intends to drill the Kharas prospect within the Kudu license, Rhino Resources is awaiting results from two high-impact wells in PEL 85. Shino underlined that BW Energy “identified new targets with upside potential – not only for gas, but also for oil within the main area,” with two wells planned by year-end.

Namibia’s Petroleum Commissioner is also quoted as saying that Namibia is “operating in an open licensing regime and will be receiving applications shortly,” with available acreage spanning deepwater, ultra-deepwater, and shallow-water environments.

TotalEnergies, which is slated to spud a prospect in Block 3B/4B within South Africa’s Orange Basin, is progressing its Venus project in Block 2913B for a final investment decision (FID) in 2026, with new data confirming better density and permeability compared to surrounding blocks.

Shell, which is eyeing drilling activities in an ultra-deepwater block in South Africa near the maritime boundary with Namibia, is analyzing data from the nine wells drilled so far at PEL 39, where the company recently wrote down $400 million.

While elaborating the analysis would “ensure we have designed a pathway to development” and determine the next steps, Shino also pointed out that 3,500 square kilometers of high-density seismic data were collected during the week on Galp’s Mopane discovery to refine volume estimates and advance the project toward FID.

Verner Ayukegba, Senior Vice President of the African Energy Chamber, underscored: “The resources are definitely there. The big questions now revolve around sub-surface conditions, gas content and how best to commercialize these discoveries.”

Many oil and gas players are interested in getting their hands on Namibia’s offshore acreage, as illustrated by Chevron, which recently boosted its portfolio in the country with a new license and operator role at two blocks.

Meanwhile, Pancontinental is searching for a new partner to secure the required funds for exploration drilling in PEL 87 after Woodside decided not to acquire an interest in the Orange Basin license.