Siseko Njobeni
5 June 2008
Johannesburg — STATE-owned oil and gas company PetroSA is looking for international partners for its exploration and production project in Egypt.
The move would enable PetroSA to share the costs of the oil production on the East Warda Block, which is in the Gulf of Suez, Egypt, the company said yesterday.
As a result, its equity in the project would fall from 100% to 80%-60%, enabling PetroSA to maintain majority shareholding of the project, said Bradley Cerff, PetroSA's regional manager for east and west Africa.
Cerff said that in the pursuit of exploration and production opportunities, companies often made commitments to governments, and the oil and gas business was risky. "It is wise to get partners on board," he said.
Cerff said PetroSA wanted the partners on board for the drilling activities, which it expected would begin in October . But he warned this could be delayed until the end of the first quarter next year owing to the unavailability of drilling rigs. A global shortage of rigs has led to exploration delays .
PetroSA's new GM in Egypt, Saleem Soobader, said he was optimistic the search for partners would yield positive results. "Based on the results of the seismic reprocessing, we are confident this opportunity will receive interest," he said.
PetroSA opened an office in Cairo this week following the acquisition of the East Warda Block in 2005. PetroSA and Egypt's government entered into a concession agreement last year.
The foray into Egypt is part of PetroSA's change in focus from local to international investments to ensure a secure supply of liquid fuels for SA.
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