Shell Namibia Upstream B.V. has decided not to exercise the remaining option available under the contract for the offshore drilling rig, Deepsea Bollsta, for work in Namibia.
This decision follows Shell Namibia Upstream B.V.’s entry into a N$1.7-billion contract extension for the oil rig, spanning from December 2023 to June 2024, but choosing not to pursue the additional option of six months.
“The Deepsea Bollsta will be available from June 2024, and the Company continues its ongoing dialogue with potential customers in the West African region and harsh environment markets. The rig has maintained outstanding performance, with the crews demonstrating the superior capabilities and efficiencies of a harsh environment semisubmersible operating in a challenging region through the winter season. The Company has established itself in Namibia with two premium semisubmersible rigs in operations and is confident its rigs are the right solution for this market long-term,” said rig owner Northern Ocean.
The Deepsea Bollsta transited from Norway to Namibia in December 2022 and commenced drilling exploration and appraisal wells in the Orange Basin.
The Bollsta rig is managed by Odfjell Drilling following an agreement with Northern Ocean in December 2021.
Shell has made four significant discoveries in Namibia to date: Graff, La Rona, Lesedi, and Jonker.
Namibia is optimistic about the future economic prospects of the country following the discovery of oil by Qatar Energy, Shell, and Total Energies in the Orange Basin, offshore Namibia.
According to government estimates, the Shell and Total Energies discoveries could generate annual taxes and royalties ranging from N$60 billion to N$95 billion, with the potential to create 3,600 jobs at the peak of production.-miningandenergy.com.na
