TotalEnergies SE tries again with Orange Basin oil exploration

TotalEnergies SE, a French energy major, plans to commence a seven-well drilling campaign in South Africa’s Deep Western Orange Basin in 2026, targeting a region with significant oil discoveries in adjacent Namibia.

Concurrently, Shell Plc has secured environmental approval to drill up to five wells in the Northern Cape Ultra Deep license block. As a result, the strategic importance of the maritime border between South Africa and Namibia is growing.

The Deep Western Orange Basin (marked “DWOB” on the adjacent map), has attracted attention following recent finds in Namibia, which have elevated the region’s prospectivity. TotalEnergies’ chief executive, Patrick Pouyanne, has expressed confidence in the basin’s potential. Shell’s plans, meanwhile, build on its existing presence in the region, bolstered by the same Namibian discoveries.

Exploration in South Africa’s offshore waters has not been without obstacles. Environmental groups have secured court rulings to halt some activities, citing ecological risks. These legal setbacks have introduced delays and uncertainty, tempering the pace of development.

Globally, offshore drilling activity remains robust, with data from Westwood indicating 37 high-impact wildcat wells drilled in the first half of 2025, yielding a 27% success rate and 1.8 billion barrels of oil equivalent in commercial resources, predominantly oil. Yet the industry faces headwinds, including regulatory scrutiny and the broader shift towards renewable energy.

Firms like Seadrill, a prominent drilling contractor, reported a net loss in Q2 2025, driven by legal costs, despite improved operational earnings.

South Africa’s offshore projects signal its growing role in global energy markets. Successful execution could enhance the country’s oil output and energy security, though environmental opposition and market volatility remain significant risks.