U.S. oil giant Chevron has announced that it is considering drilling a new exploration well in the Walvis Basin, off the coast of Namibia, with operations potentially commencing in 2026 or 2027. This development signals Chevron's interest in the Namibian oil reserves despite failure of a previous well in the adjacent Orange Basin to yield commercial hydrocarbon reserves earlier this year.

Chevron Namibia Exploration Limited, a subsidiary of the corporation, stated on Thursday April 24, that it is actively maturing its prospect portfolio within its Petroleum Exploration License 82 (PEL 82) in the Walvis Basin. This vast area lies to the north of the prolific Orange Basin, which has been the site of significant offshore discoveries by other major players in the industry, including TotalEnergies, Shell and Galp.

In a company statement, Chevron emphasized that this program demonstrates its commitment to activating its "strong and growing exploration portfolio." The potential drilling of this new well indicates a long-term strategy for the company in this promising region of southern Africa, which has rapidly emerged as a global exploration hotspot.

PEL 82 encompasses blocks 2112B and 2212A in the Walvis Basin. Notably, Chevron acquired an 80% operating interest in this license earlier this year, with Custos Energy and the National Petroleum Company of Namibia (NAMCOR) each retaining a 10% stake. This acquisition significantly expanded Chevron's footprint in Namibia's offshore sector, complementing its existing operations in the Orange Basin under Petroleum Exploration License 90 (PEL 90).

While Chevron's first deepwater offshore well in the Orange Basin, drilled in collaboration with Trago Energy (a subsidiary of Custos) and NAMCOR, did not discover commercially viable hydrocarbon reserves in January 2025, the company remains optimistic about the broader potential of Namibia's offshore basins. The data gathered from the initial well is likely being used to refine their understanding of the geological structures and inform their approach to future exploration efforts in the Walvis Basin.

Namibia has become a focal point for oil and gas exploration in recent years, following a series of significant discoveries that have highlighted the potential of its deepwater basins. The Orange Basin, in particular, has attracted substantial investment and activity. These discoveries have positioned Namibia as a potentially major future oil producer in Africa, attracting interest from numerous international energy companies.

Chevron's decision to consider drilling in this area underscores the continued high interest in unlocking the hydrocarbon potential of Namibia's offshore territories.

The Namibian government has actively encouraged exploration activities, recognizing the potential for these discoveries to transform the country's economy. With a stable political environment and attractive fiscal policies, Namibia aims to become a significant player in the global energy market.