Since oil and gas drilling campaigns over the last few years have been confirmed notable discoveries in the Orange Basin off the Namibian coast, the drillings campaigns scheduled for 2026 are crucial to confirm commercially viable volumes and in turn advance development planning. However, these downstream activities are only one aspect of a successful hydrocarbon industry. In this regard the African Energy Chamber advises that two breakthrough offshore discoveries in Namibia in 2022, one by Shell and one by TotalEnergies, marks an important milestone for the country’s future energy landscape and for Africa’s broader upstream ambitions. 

“The excitement generated by high-impact discoveries creates a ripple effect that benefits the entire continent. I am convinced that the ongoing interest we are seeing today in African exploration and production (E&P) stems in part from the major discoveries in Namibia, alongside recent successes in Côte d’Ivoire, Angola, and Egypt”, commented NJ Ayuk, executive chairman of the African Energy Chamber. 

Ayuk’s sentiment is reflected in the chamber’s 2026 Outlook Report, titled “The State of African Energy,” which projects renewed momentum in the continent’s upstream market during the next several years. According to the report, global exploration and production (E&P) capital expenditure (capex) is forecast to reach approximately US$504 billion by 2026, with Africa contributing about US$41 billion (over N$674 billion). 

Upstream oil and gas infrastructure comprise specialised facilities and equipment used for the exploration, drilling, and production of crude oil and natural gas. Often referred to as E&P sector, this infrastructure is the first link in the energy supply chain. This is particularly pertinent given that Namibia continues to be a closely watched exploration frontier after significant offshore discoveries were announced in the Orange Basin since 2022. 

“Yes, the report acknowledges that optimism is being tempered by caution. Keen to protect their balance sheets, investors are scrutinising opportunities closely. 

But overall, the potential for sustained upstream expansion is truly promising for African states with petroleum reserves. The key will be doing as much as possible to attract the capital needed to pursue the next wave of discoveries,” Ayuk stated. 

He added that as investors weigh their options, the most compelling signs of progress are coming from Africa’s frontier and emerging basins.

“In Namibia’s Orange Sub-Basin, where more than 6 billion BOE (Barrel of Oil Equivalent) have been discovered in less than four years, operators are preparing the next wave of high-impact wells”, Ayuk added. 

A BOE quantifies energy using a standardised measure beyond just oil, assisting investors and analysts in comparing oil and natural gas reserves effectively. Oil, measured in barrels, and natural gas, measured in cubic feet, can use BOE for comparative evaluations. This standard is essential for gauging company assets and investment potential.

Meanwhile, TotalEnergies and Galp are expected this year to embark on a multi-year exploration and appraisal campaign in PEL (Petroleum Exploration Licence) 83 offshore Namibia. Their drilling appraisal program is expected to include several wells aimed at further delineating the discovery and refining development concepts. The discovery in PEL 83 is regarded as one of Namibia’s most significant offshore finds to date. 

Moreover, Shell, with partners QatarEnergy and the National Petroleum Corporation of Namibia (Namcor), plans to drill an exploration well in PEL 39 in the Orange Basin in April this year to further evaluate the deepwater block. 

Rhino Resources plans to further appraisal PEL 85 in 2026, including a well at their Capricornus prospect and a flow test at the nearby Volans discovery. 

​​Further north, in the Walvis Basin, Chevron Namibia Exploration is evaluating the potential to drill an exploration well under PEL 82. This activity, expected either this year or next, expands activity beyond the Orange Basin. 

While this Walvis Basin prospect remains at a very early stage, a successful well could significantly broaden Namibia’s offshore exploration outlook.