Shell Namibia Upstream BV, which is planning deep water oil exploration offshore of southern Namibia, says it prefers Lüderitz as its logistics base due to its closeness to the licence area, according to a draft scoping report released this week.
Shell holds a 90 percent controlling interest in Petroleum Exploration Licence (PEL) 39, while the National Petroleum Corporation of Namibia (NAMCOR) holds the remaining 10 percent.
PEL 39 is located adjacent to the southernmost Namibian offshore border with South Africa.
Based on the analysis of previously acquired seismic data, Shell is proposing to drill one or possibly two exploration wells in the northern portion of the licence area, to determine whether identified geological structures contain oil or gas in potentially commercial extractable amounts.
“The onshore logistics base would be located in either the Port of Lüderitz or the Port of Walvis Bay. Shell’s preferred alternative is Lüderitz due to proximity to the licence area,” the report said.
Shell Namibia plans to spend up to US$100 million on the exploration activities after it undertook a 3-D seismic survey in the northern portion of the licence area in 2014.
Shell expects a disruption in fishing operations and loss of access to fishing grounds due to the 500-metre safety exclusion area around the drilling unit.
In the early exploration phase, Shell said it consciously avoided the peak fishing catch period, demonstrating that oil and gas exploration and Namibia’s fishing industry can co-exist.
Shell Namibia originally explored the Kudu Gas Field. PEL 39 is not far from there.
In early 2014, Shell returned to upstream operations in Namibia and established an office in Windhoek as a holder of a deep-water licence some 250 kilometres offshore, on the border with South Africa measuring approximately 12,000 km².
Government has been inviting international oil companies to apply for petroleum exploration licences in Namibia. So far, the mines ministry has issued one production licence, 35 exploration licences and four reconnaissance licences.
Marine diamond mining is currently limited to the southern half of the Namibian offshore. The area is located well offshore of the existing diamond mining operations held by Debmarine Namibia.