PetroSA has signed an agreement with the Russian geological exploration company, Rosgeo, which will see about $400m being invested in oil and gas development in South Africa.
Petro SA spokesperson, Thabo Mabaso, said that the agreement was signed at the 9th Annual Brics Summit currently underway in Xiamen in China on Monday.
He said the agreement involves the development in the exploration areas of blocks 9 and 11a off the southern coast of South Africa.
Mabaso said Petro SA had been looking at ways of sustaining the cash-strapped company, adding that this “deal offers that and much more.”
“Rosgeo is supposed to conduct a considerable volume of geological exploration work. In particular, it is planned to carry out more than 4,000 square km of 3D seismic operations and over 13,000 km of gravity-magnetic exploration works, as well as the drilling of exploratory wells. The estimated volume of the investment is about US$400 million,” said Mabaso.
He said the project envisages extraction of up to 4 million cubic metres of gas daily. This will subsequently be delivered to PetroSA’s Gas-To-Liquids refinery, in Mossel Bay, the South Coast processing plant.
The agreement was signed by the CEO of Rosgeoa, Roman Panov, the chairperson of the Central Energy Fund, Luvo Makasi, and PetroSA’s chairperson, interim chairperson, Nhlanhla Gumede.
"The signed agreement is aimed at developing bilateral relations and will strengthen Rosgeo’s presence in the African market," Panyo said in a statement.
According to Makasi the search for oil and gas resources in South Africa remains very strategic for the country’s energy security and was extremely important to PetroSA’s continued and sustainable survival.
“South Africa’s oil & gas potential remains largely unexplored. This exploration effort presents significant upside to both the country and PetroSA. The upside for PetroSA is the possible expansion of our depleting gas resources. Discovery of hydrocarbons on our shores has the potential to bring significant revenues to the country and prove the country’s oil and gas prospectivity,” he added.
The PetroSA Interim Board Chairperson said the agreement represented a significant development towards building a new strategic thrust for the company. He added that the agreement was strongly repositioning PetroSA towards growth.
