Shell has completed drilling operations on its Merlin-1X discovery well in Namibia's Orange basin, part of Petroleum Exploration Licence (PEL) 39. The supermajor reported positive results from this well, which aimed to find additional hydrocarbon resources to support a commercial development. This follows a $400 million exploration write-off in early 2025 for the licence, as Shell could not develop a viable project despite five discoveries.

The Merlin-1X well was drilled by the semi-submersible rig Deepsea Mira and encountered "good reservoir quality with light oil and limited associated gas" in a Coniacian-age reservoir. Shell subsequently drilled a sidetrack to gather more data. According to marine intelligence, Deepsea Mira left the well location on 30 June and arrived in Walvis Bay on 3 July. Rig monitoring service Esgian noted the rig is now ready for planned upgrades and modifications for future operations.

A Shell spokesperson reiterated that further exploration and appraisal drilling is being considered for PEL 39 this year but declined to provide specific timelines or comment on findings or reserves until the exploration programme is complete. Shell stated it remains focused on potential commercial pathways for further development, together with its partners.

Shell operates PEL 39 with a 45% interest, alongside QatarEnergy (45%) and state-owned Namcor (10%). Typically, Namcor announces discoveries on its website or social media, but it did not do so for Merlin-1X. However, shortly after Shell's announcement, Namcor rapidly issued a statement commending Rhino Resources' appraisal success on the Capricornus discovery in adjacent PEL 85. Namcor has been approached for comment on Merlin-1X but has maintained silence.