08:03 AM EST, 01/09/2025 (MT Newswires) -- Shell (SHEL) will write off $400 million over an offshore oil discovery in Namibia that it deemed commercially unviable, Reuters reported Thursday.

The oil major told MT Newswires that "the discovered resources cannot currently be confirmed for commercial development" in regards to the write-off in Namibia.

Reuters said the company faced technical and geological challenges in developing the resources, which also have an elevated natural gas content, further complicating their development.

"We are still evaluating commercial pathways for further exploration and appraisal," Shell told MT Newswires.

Shell and its partners QatarEnergy discovered oil and gas resources in offshore block PEL39 in 2022.

Additionally, the company will take another $300 million write-off related mainly to exploration licenses in Colombia, Reuters said.

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