Shell Writes Down its Holdings off Namibia By $400 Million

After three years and nine exploration wells, Shell has decided to write down the value of its lease area in Namibia’s Orange Basin by $400 million. 

Shell has discovered oil in more than one of its wells in the block, but has decided that these prospects “cannot currently be confirmed for commercial development.” Shell encountered geological challenges and technical difficulties during the drilling campaign, including low permeability in the formation, which makes extraction difficult. 

Namibi…