Shell to Farm into S African Blocks
Shell has agreed to farm into the Transkei and Algoa blocks off South Africa held by London-based player Impact Oil & Gas, the latter said on November 4.
Under their agreement, Shell will take a 50% interest in the licence covering both blocks and assume operatorship. It has also secured an option to take a further 5% interest if the joint venture decides to renew the licence for a third period, expected to begin in 2024.
The Algoa and Transkei blocks cover 45,840 km2 in waters up to 3,000 m deep east of the 11B/12B block, where France's Total made a "significant" gas condensate discovery at the Luiperd prospect in October, following up on the Brulpadda find in February 2019.
"We are delighted to have secured a farm-out partner of Shell’s calibre, highlighting the significant value potential of our exceptional South African exploration portfolio," Impact CEO Siraj Ahmed said in a statement. "Shell joins the Transkei & Algoa licence at a very exciting time for exploration drilling in South Africa."
Impact and Shell plan to acquire over 6,000 km2 of 3D seismic data in the first quarter of 2022, before considering exploratory drilling. The farm-in deal is subject to standard conditions, including the South African government's approval.
Impact also announced on November 3 it would farm in for a 90% interest in and operatorship of Area 2, which borders both Algoa and Transkei, under a deal with Silver Wave Energy.