Exxon Farms Down S Africa, KRG Interests
ExxonMobil has farmed down interests in exploration licences in South Africa and Iraqi Kurdistan, in both cases to Norwegian companies. Those offshore South Africa have both oil and gas potential.
Offshore South Africa, Statoil said September 7 it had acquired a 35% interest in Exploration Right 12/3/252 Transkei-Algoa, from ExxonMobil. The latter will remain operator with a 40% interest (down from 75%), while South African independent Impact Africa holds 25%. The license covers 45,000 km2 in water depths of up to 3,000 meters.
Statoil separately also completed a transaction with OK Energy Ltd, acquiring 90% interest and operatorship in the Exploration Right 12/3/257 East Algoa, also offshore South Africa. OK Energy retains a 10% interest in the roughly 9,300 km2 licence.
Statoil entered its first license in South Africa in 2015, acquiring a 35% interest in the ExxonMobil-operated Tugela South Exploration Right. “These transactions strengthen Statoil’s position in South Africa and our long-term exploration portfolio. This is in line with our global exploration strategy of early access in basins with high potential,“ said Nick Maden, the company's senior vice president for exploration in the southern hemisphere.
In the Kurdistan region of Iraq, Norwegian firm DNO said September 8 it had farmed into the Baeshiga oil exploration licence, assuming operatorship of the license with a 40% paying (32% net) interest, acquiring half of ExxonMobil's position. ExxonMobil retains a 40% paying (32% net) stake, while the firm Turkish Energy Company (TEC) retains a 20% paying (16% net) interest and the Kurdistan Regional Government its carried 20% stake.
"We are pleased to partner with ExxonMobil, TEC and the Government on this exciting exploration opportunity," said Bijan Mossavar-Rahmani, DNO's Executive Chairman. Pending government approval, DNO will drill an exploration well in the first half of 2018 with a second exploration well to follow on a separate structure. The 324km2 license is situated 60km west of Erbil and 20km east of Mosul. ExxonMobil had previously conducted extensive geological and geophysical studies and constructed a drilling pad before work was interrupted due to security conditions in the region.
Statoil interests in licences offshore South Africa (Photo credit: Statoil)
Mark Smedley