Cairn India ventures into South AfricaAugust 17, 2012, 7:26 pm
The Petroleum Oil and Gas Corporation of South Africa Ltd. (PetroSA) and Cairn India Group, parent of Cairn Lanka Pvt. Ltd exploring for oil off Sri Lanka’s Northwestern coast, signed a farm-in agreement for crude oil and natural gas exploration 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.
"Block 1 covers a large area of 19,922km2 and is currently in the initial stages of exploration. It has an existing gas discovery and identified oil and gas leads and prospects. Located in the geologically-proven Orange Basin along the north-western maritime border of South Africa with Namibia, the block is on trend with the discovered Kudu and Ibhubesi gas fields. Cairn India will hold a 60% interest in the block, through a wholly-owned South African subsidiary, and will be the Operator, with PetroSA holding the remaining interest," the Cairn India Group said in a statement.
"PetroSA is well poised to grow into a leading integrated African energy company. 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.
"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. The Orange Basin is an emerging hydrocarbon province with potential for material oil and gas discoveries. Block 1 will be an anchor exploration asset in South Africa and will augment Cairn India’s existing portfolio."
Everton September, PetroSA Vice President for New Ventures, said: "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. We have a shared mindset, and together are extremely well placed to realize the full potential of Block 1. "
P. Elango, Cairn India Director for Strategy said: "Cairn India is extremely pleased to partner with PetroSA, one of the largest oil and gas companies in South Africa. This is an important first step for the company’s growth beyond the Indian sub-continent. We see an attractive opportunity to leverage our capabilities in a rapidly-emerging area and aspire to build a wider business in the region."
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