NAMCOR gets boost from Merlin-1X

The National Petroleum Corporation of Namibia (NAMCOR) says the latest drilling results from offshore petroleum exploration licence 39 (PEL 39) have added to its understanding of the Orange Basin.

Merlin-1X, operated by Shell and drilled with QatarEnergy and NAMCOR, encountered light oil and limited associated gas. Shell said the well also showed good reservoir quality.

PEL 39 covers about 12 000 square kilometres offshore Namibia. Shell and QatarEnergy each hold a 45% interest, while NAMCOR holds 10%.

Merlin-1X is the 10th well drilled on the licence, adding to a substantial body of geological data gathered by the partners since Shell began exploring the block.

The drilling campaign has included several wells targeting different geological prospects. Graff-1X, drilled in 2022, confirmed a light-oil discovery and was followed by wells including La Rona-1X and Jonker-1X as Shell sought to establish the scale and characteristics of the resources across the licence.

The programme has produced mixed results. While the earlier wells confirmed the presence of oil, reservoir characteristics and gas content presented challenges in determining whether the discoveries could support commercial development.

That uncertainty contributed to Shell's more cautious assessment of its Namibian portfolio, including a $400 million impairment recorded in 2025.

Merlin-1X now provides a different set of data. Shell said the well delivered its strongest subsurface results on PEL 39 to date, potentially giving the partners a better basis for deciding where further appraisal should be focused.

The result does not, however, establish the commercial viability of the licence. The partners still need to determine the extent of the resource and whether the characteristics encountered in the latest well are sufficiently widespread to support development.

Shell is considering further drilling later in 2026 as part of its exploration and appraisal programme.

Merlin-1X therefore adds another piece to a geological and commercial picture that Shell and its partners have been building for several years.