Pretoria — State oil company, PetroSA, and Indian oil and gas exploration company Cairn India Group on Thursday signed a farm-in agreement for crude oil and natural gas exploration in the Orange Basin on the west coast of South Africa.
The agreement is in the offshore Block 1 in the Orange Basin on the west coast. It covers a large area of 19 922km2 and is currently in the initial stages of exploration.
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.
"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 realise the full potential of Block 1," said Everton September, PetroSA Vice President for New Ventures.
Cairn India Director for Strategy P. Elango said his company was pleased to partner with PetroSA.
"This is an important first step for the company's growth beyond the Indian subcontinent. We see an attractive opportunity to leverage our capabilities in a rapidly emerging area and aspire to build a wider business in the region," said Elango.