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Energy ministers at the annual BRICS Summit, underway in China, observed the signing of a $400 million deal to be invested in South Africa’s oil and gas development.

Signing the agreement yesterday was South African oil and gas firm, PetroSA and geological exploration company of the Russian Federation, Rosgeo.

Rosgeo’s CEO Roman Panov, the chairman of the central energy fund, Luvo Makasi, and Nhlanhla Gumede, PetroSA’s interim chairperson, signed the agreement.

According to a joint statement, the agreement involves the development in the exploration areas of blocks 9 and 11a off the South Coast of South Africa.

Within the framework of the contract, the Russian company is supposed to conduct a considerable volume of geological exploration work.

Gas development in South Africa

The project envisages extraction of up to 4 million cubic metres of gas daily. This will subsequently be delivered to PetroSA’s gas-to-liquids refinery, in Mossel Bay, the South Coast processing plant.

Commenting on the development, Makasi said the search for oil and gas resources in South Africa remains very strategic for the country’s energy security. Read more…

He said: “South Africa’s oil & gas potential remains largely unexplored. This exploration effort presents significant upside to both the country and PetroSA. The upside for PetroSA is the possible expansion of our depleting gas resources.

“Discovery of hydrocarbons on our shores has the potential to bring significant revenues to the country and prove the country’s oil and gas prospectivity.”

Advanced technologies

Rosgeo’s CEO Panov said: “The signed agreement is aimed at developing bilateral relations and will strengthen Rosgeo’s presence in the African market.”

Panov also stressed that within the framework of the contract is the use of advanced technologies, including 3D exploratory works, and modern seismic and drilling vessels.

In particular, it is planned to carry out more than 4,000 square km of 3D seismic operations and over 13,000 km of gravity-magnetic exploration works, as well as the drilling of exploratory wells.

 

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