South Africa’s state-owned oil company PetroSA has reportedly approved a deal that would hand Shell Offshore a 60% stake in its Block 2C acreage off the west coast.
If finalised, the farm-in agreement would deepen Shell’s presence in the Orange Basin, now one of the world’s most sought-after exploration regions following a string of major oil finds in neighbouring Namibia, Reuters reported.
According to a brief note outlining PetroSA’s priority projects, the company has agreed to let Shell acquire the majority stake in exchange for a US$25 million (R424 million) signing bonus, as well as a full cost carry of roughly US$135–150 million (R2.2–R2.5 billion) for three exploration wells, the news agency said.
PetroSA, which currently owns 100% of Block 2C, did not respond to requests for comment.
A Shell spokesperson declined to discuss “specific opportunities” for commercial reasons but said the energy major “continuously evaluates various portfolio options to grow our business”.
Shell is already pursuing exploration opportunities along South Africa’s west coast. In July, it secured environmental authorisation to drill up to five deep-water wells in the Northern Cape Ultra Deep Block within the Orange Basin. The company has not indicated when drilling might begin.
In a separate development, Shell filed an application in October to appeal a high court ruling that halted exploration activities at offshore Block 5/6/7, a case brought by environmental groups that has stalled drilling plans in the area.
PetroSA, which became part of the newly formed South African National Petroleum Company this year, holds a broad portfolio of assets, including offshore blocks and the gas-to-liquid refinery in Mossel Bay, currently placed under care and maintenance.
Meanwhile, the Petroleum Agency South Africa (PASA) said it could not comment on the Block 2C stake transfer, as it has not yet received a formal application to process changes to ownership interests.
