South Africa's legacy national oil company, PetroSA, has approved a deal to give Shell Offshore a 60% stake in its Block 2C, off the country's west coast, a document seen by Reuters
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South Africa's legacy national oil company, PetroSA, has approved a deal to give Shell Offshore a 60% stake in its Block 2C, off the country's west coast, a document seen by Reuters showed on Monday.
If successfully concluded, the agreement will strengthen oil major Shell's SHEL.L exposure to the Orange Basin, which has become one of the world's most coveted exploration zones after major oil discoveries in neighbouring Namibia.
A short note under PetroSA's priority programmes said the company had approved the farm-in deal to allow Shell Offshore to take a 60% interest "with Shell committing a $25 million signing bonus and full cost carry (of around $135-$150 million) for three wells".
The chief executive at PetroSA, which holds 100% of Block 2C, pending the deal, did not immediately respond to a request for comment.
A Shell spokesperson said commercial sensitivities prevented any comment on "specific opportunities", but added the company was "continuously evaluating various portfolio options to grow our business".
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