PetroSA and Cairn India Group announced that they have signed a farm-in agreement for exploring for crude oil and natural gas in the offshore Block 1 in the Orange Basin on the west coast of South Africa. The closure of the transaction is subject to South African regulatory approvals.
Commenting on Block 1, the company said it covers a large area of 19,922km and is currently in the initial stages of exploration and it has an existing gas discovery and identified oil and gas leads and prospects.
Cairn India will, through a wholly owned South African subsidiary, hold a 60% interest in the block and will be the Operator, with PetroSA holding the remaining interest.
PetroSA said stated that this is a step forward in achieving Cairn India's strategic goal of growing its resource base by acquiring exploration and appraisal assets outside the Indian sub-continent. Block 1 will be an anchor exploration asset in South Africa and will augment Cairn India's existing portfolio.
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by RTT Staff Writer
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