The Merlin-1X exploration well yielded light crude oil and high-quality reservoir data, further cementing Namibia’s status as a premier global oil exploration destination
QatarEnergy has announced the discovery of an additional offshore oil deposit within Namibia’s Orange Basin, marking the eighth successful well drilled in Petroleum Exploration License 39 and reinforcing the southern African country’s emergence as a premier global destination for oil exploration.
The energy giant said its Merlin-1X exploration well produced some of the most promising geological data seen in the licensing area to date, including the presence of light crude oil and high-quality reservoir features. The well was spudded on 8 April 2026 and is operated by Shell, which holds a stake in the licence alongside QatarEnergy and Namibia’s state-owned National Petroleum Corporation.
“We are pleased with this discovery, which follows three earlier discovery announcements in Namibia,” QatarEnergy CEO and Energy Minister Saad Sherida Al-Kaabi said.
Shell said the Merlin-1X well successfully penetrated the Coniacian play and delivered the most promising subsurface results to date in PEL 0039, indicating good reservoir quality with light oil and limited associated gas compared to prior results within the licence.
QatarEnergy continues to consolidate a significant operational footprint in Namibia, maintaining interests in four offshore exploration licences including PEL 56, PEL 91, PEL 90, and a 45 percent stake in PEL 39, providing exposure to approximately 34,000 square kilometres of offshore territory.
A report by The High Street Business noted that over the past several years, major international oil corporations have increased exploration activity along Namibia’s coastline, particularly in the Orange Basin. The spike in interest followed a series of offshore discoveries revealing that the country potentially holds significant hydrocarbon reserves capable of supporting a future oil-producing sector.
In 2023, NAMCOR reported the finding of light oil around 270 kilometres offshore. Momentum continued in 2024, with TotalEnergies and Shell reporting finds estimated at 2.6 billion barrels of oil resources, raising hopes that commercial production may begin before the end of the decade. Italy’s Eni has joined the Orange Basin in collaboration with BP and Rhino Resources, while BP recently acquired holdings in exploration licences in the Walvis Basin.
Not all discoveries have proven financially viable. Shell took a significant write-down on one of its Namibian finds after realising the project would be difficult to execute economically. Despite those challenges, exploration activity has continued to grow, with discoveries across the Orange, Walvis, Lüderitz and Kavango basins positioning Namibia as a potential energy powerhouse.