Shell will write down around $400 million over an oil discovery offshore Namibia that it deemed commercially unviable in a blow to the southern African country's efforts to become a crude producer. Shell told Reuters that discovered oil and gas resources in offshore block PEL39 in Namibia "cannot currently be confirmed for commercial development.

Namibia’s Mines and Energy Ministry has downplayed the impact of energy company Shell recent $400-million write-down on its offshore oil discoveries, stating that the country it remains committed to developing its hydrocarbon discoveries.

Shell will write down around $400 million in its fourth quarter results relating mainly to an oil and gas discovery offshore Namibia, the company said on Wednesday. The British company told Reuters that discovered oil and gas resources in offshore block PEL 39 in Namibia "cannot currently be confirmed for commercial development.

Shell has determined that an oil discovery off the coast of Namibia is not commercially viable, leading to a projected write-down of around $400m (£325.52m), reported Reuters. This decision is a setback for Namibia's ambition to establish itself as an oil producer.

There have been several oil explorations by major oil conglomerates in the Southern African country of Namibia in recent years. Shell has announced a $400 million write-down related to an offshore oil discovery in Namibia,