PetroSA AND ROSGEO SIGN MULTI-MILLION DOLLAR AGREEMENT TO DEVELOP OIL AND GAS BLOCKS IN SOUTH AFRICA
PR OF CHINA, 04 September 2017 – PetroSA, the Oil and Gas Corporation
of South Africa, and Rosgeo, geological
exploration company of the Russian Federation, have
today signed an agreement that will see about US$400 Million invested in oil
and gas development.
The agreement was signed in the presence of Ministers of
Energy at the 9th Annual Brics Summit currently underway in Xiamen,
Peoples Republic of China.
The agreement involves the development in the exploration
areas of blocks 9 and 11a off the South Coast of South Africa. Within the
framework of the agreement, 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.
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.
Roman Panov, the CEO of Rosgeo, Luvo Makasi, the Chairman of
the Central Energy Fund, and Nhlanhla Gumede, PetroSA’s Interim Chairperson,
signed the agreement.
Mr Panov also stressed that within the framework of the
contract Rosgeo will use advanced technologies, including 3D exploratory works,
and modern seismic and drilling vessels.
"The signed agreement is aimed at developing bilateral
relations and will strengthen Rosgeo’s presence in the African market," he
Mr Makasi said 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
“A find in block 9 and 11a would result in much desired
exploration activity of our onshore and offshore oil and gas potential. The
country and PetroSA will benefit greatly from the find. From the perspective of
PetroSA it will result in cheaper feed into the Mossel Bay refinery,“ Mr Gumede
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