Johannesburg - South African state-owned oil firm PetroSA and Cairn India Group have signed a farm-in deal for crude oil and natural gas exploration in Block 1 off South Africa’s west coast, the two companies said in a joint statement on Thursday.
The block, located in the Orange Basin, covers an area of 19 922 km².
It is in the initial stages of exploration and has an existing gas discovery and identified oil and gas leads and prospects, the companies said.
Cairn India will hold a 60% stake in the block and will serve as operator, with PetroSA holding the rest.
In a farm-in agreement, one company buys an interest from another in an existing field, often to help finance development.
* Follow
Fin24 on
Facebook,
Twitter and
Google+.
