SA in offshore oil, gas exploration deal
19 December 2012
The world's largest publicly traded oil and gas company, Exxon Mobil, has signed an
agreement to begin offshore exploration activities on the east coast of South Africa
through its affiliate ExxonMobil Exploration and Production South Africa, the company
announced on Monday.
The agreement was signed with Impact Africa Limited - a subsidiary of British Impact
Oil and Gas Limited - to acquire a 75% participating interest and become operator in
the Tugela South Exploration Right.
Under the agreement, ExxonMobil Exploration also has the right to acquire 75%
interests in future exploration rights in three offshore areas, subject to South African
"We believe South Africa has significant potential and we will continue to look for
additional opportunities there," said ExxonMobil Exploration president, Stephen
The Tugela South Exploration Right covers about 2.8-million acres
offshore Durban in
KwaZulu-Natal. It has water depths extending from the coastline to approximately 6
500 feet [about 1.98 kilometres].
The future exploration rights cover an additional 16-million acres offshore with water
depths extending from the coastline to approximately 9 800 feet [2.99 kilometres],
"Separately, the ExxonMobil affiliate also has executed a technical cooperation
permit with the South African government to study the hydrocarbon potential of the
Deepwater Durban Basin covering approximately 12.4-million acres offshore Durban,"
the company said.
The permit allows exclusive rights to study an area for a year.