Shell, Petrobras complete Falcão-1 well with no commercial hydrocarbon discovery offshore São Tomé and Príncipe

Brazil-based state-controlled integrated energy company Petrobras (NYSE:PBR) and UK oil and gas major Shell (LSE/NYSE:SHEL) have completed drilling of the Falcão‑1 well in São Tomé and Príncipe.

The well, located in deepwater Block 10 in the country’s Exclusive Economic Zone in the Gulf of Guinea, is part of an exploration programme carried out by a consortium led by Shell to assess the hydrocarbon potential in one of Africa’s most underexplored offshore basins.

The test well was drilled to a depth of approximately 3,000 metres but failed to identify a commercially viable hydrocarbon presence. However, it has provided valuable geological data seen as important for future exploration in this high-risk frontier basin.

Shell confirmed that no discovery was made. “While the well did not encounter commercially viable hydrocarbons, the operation provided valuable insights into key aspects of the basin,” a company spokesperson said, as reported by Reuters on January 21.

According to the African Energy Chamber (AEC), this outcome reflects the realities of frontier exploration, while representing a significant step forward and underscoring the commitment of major operators to Africa’s deepwater potential.

“Exploration is inherently iterative,” says AEC’s executive chairman NJ Ayuk. “Not every well will be a commercial discovery on the first attempt. What matters is the knowledge gained, the refinement of geological models and the demonstration that Africa’s frontier basins are being taken seriously by major players like Petrobras and Shell. São Tomé and Príncipe remain a strategic piece of the puzzle and the data from Falcão‑1 will serve as the foundation for future exploration success.”

The block is operated by a consortium led by Shell with a 40% working interest, in partnership with Petrobras with a 45% stake, under the supervision of the country’s Agência Nacional do Petróleo de São Tomé e Príncipe (ANP-STP), holding the remaining 15%.

The São Tomé and Príncipe project shows how oil companies are relying more on data-led exploration in Africa’s frontier basins. According to the AEC, the significance of this project extends beyond São Tomé and Príncipe. Incorporating the Falcão-1 data will support additional seismic analysis and future drilling, helping to refine targets, reduce risk and improve the chances of commercial success in São Tomé and Príncipe and in comparable frontier basins along the Atlantic margin.

“As investors prepare for the next investment cycle, this work programme serves as a reminder that frontier exploration remains a key driver of global energy growth – and that Africa’s deepwater basins are still among the last frontiers where transformational discoveries can occur,” says the AEC.