SA, India sign oil, gas exploration deal
17 August 2012
State oil company PetroSA and Indian oil and gas exploration company Cairn India
Group signed a farm-in agreement for crude oil and natural gas exploration in the
Orange Basin on the west coast of South Africa in Cape Town on Thursday.
The agreement is for the offshore area on the north western border between South
Africa and Namibia, which covers an area of 19 922 square kilometres.
It is currently in the initial stages of exploration after PetroSA acquired a 1500
square kilometre three-dimensional seismic survey in 2009.
The Orange Basin is an emerging hydrocarbon province, with the potential of oil and
gas discoveries, and Block 1 will serve as an anchor exploration asset in South
Africa, according to PetroSA.
Cairn India will hold a 60% interest in the block, through its wholly-owned South
African subsidiary, and will be the operator, with PetroSA holding the remaining
This falls in line
with PetroSA's ambitions to grow into a leading integrated African
"The company seeks to nurture strategic alliances with experienced international
companies across the oil and gas value chain. The partnership with Cairn India starts
an exciting new chapter and represents another positive development in that
direction," the company said in a statement.
"We are delighted to join hands with one of Asia's most successful exploration
companies. Cairn India brings with it extensive geo-technical and operating
capabilities that will combine very well with our experience and understanding of the
region," said PetroSA vice president for new ventures, Everton September.
"We have a shared mindset, and together are extremely well placed to realise
the full potential of Block 1."
Cairn India Director for Strategy, P Elango, said his company was pleased to partner
with PetroSA. "This is an important first step for the company's
growth beyond the
"We see an attractive opportunity to leverage our capabilities in a rapidly emerging
area and aspire to build a wider business in the region," he said.