Shell plans to acquire oil block in South Africa

Image: Shell

Oil major Royal Dutch Shell plans to acquire an oil block in South Africa’s unexplored waters.

Confirming the reports, the Petroleum Agency South Africa said the major has applied to take a stake in OK Energy’s license in deep waters off the country’s west coast.

“We have indeed received an application which is awaiting ministerial approval,” the regulator told Bloomberg.

This follows a few months after Total announced its Brulpadda find, where the French major said it opened up a “new world-class gas and oil play” in the country with its gas condensate discovery. South Africa has since seen a growing interest in its hydrocarbon prospects, drawing in more investment and growing as an exploration play.

Although Shell has not yet commented on the reports, should the deal proceed, the major will acquire a 40 percent interest from Anadarko Petroleum Corp in deep-water block 5,6 and 7 in the Atlantic off Cape Town.

This report comes as the country is working to draft separate oil and gas legislation and two years after Shell’s exit of the Orange Basin where it had cited policy uncertainty as one of its reasons.

Under the theme #MakeEnergyWork, the Africa Oil & Power flagship conference – now the official conference of South Africa’s Department of Energy, will showcase the energy sector as a key driver of economic growth, jobs, and opportunity for Africa’s people and private sectors.

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