Shell reported encountering hydrocarbons at its Merlin-1X exploration well offshore Namibia in the Orange Basin.

The company completed drilling operations at the Merlin-1X well as part of its broader exploration campaign in the basin. The Orange Basin has attracted increasing industry interest in recent years following a series of offshore discoveries.

No detailed resource estimates for the well have been released. Shell will continue analysing geological and reservoir data gathered during drilling to evaluate the discovery and assess potential development options.

According to Offshore Energy, Eugene Okpere, Shell’s Executive Vice President for Exploration, Strategy and Portfolio, said the well had delivered the company’s most encouraging results to date within PEL 0039. He noted that Merlin-1X encountered good reservoir quality, light oil and limited associated gas, adding that Shell would continue a disciplined, data-led evaluation programme to determine the commercial potential of the discovery. Okpere previously served as President of Shell Trinidad and Tobago before taking on his current global role within the company.

The Merlin-1X findings add to a series of offshore discoveries reported since 2022 by companies including Shell, TotalEnergies and Galp. These discoveries have been identified as a key driver of increased exploration activity in Namibia’s offshore sector.

The Orange Basin spans the maritime boundary between Namibia and South Africa. Analysts have also pointed to geological similarities between the basin and productive offshore regions in Brazil when assessing its exploration potential.

The well was drilled as part of ongoing efforts to assess the prospectivity of offshore Namibian acreage. Operators typically evaluate reservoir quality, recoverable resources, development economics and infrastructure requirements before making investment decisions on prospective projects.

Rising exploration activity in the basin has attracted service providers, drilling contractors and offshore engineering companies. As a result, Namibia has become a significant focus area for offshore exploration and appraisal campaigns.

The latest results come as the industry continues to seek new sources of conventional oil and gas supply. Declining output in many mature producing regions has increased the strategic importance of frontier exploration areas such as Namibia.

Further appraisal and evaluation work will be required before any discovery can advance toward commercial development and production. Drawing on reporting from Reuters, Offshore Energy and company disclosures, the Merlin-1X well contributes valuable data that may enhance understanding of the Orange Basin’s long-term resource potential.