US
oil and gas company
Exxon Mobil Corp has announced it is to begin exploration activities on the east coast of South Africa.
The world’s largest publicly traded oil and gas company, through its affiliate ExxonMobil Exploration and Production South Africa, has signed an agreement with Africa Ltd, a subsidiary of British Impact Oil and Gas Ltd.
Under the agreement Exxon has acquired a 75 per cent stake in blocks owned by Oil and Gas Ltd. Exxon will control operations in the area it’s acquiring in the Tugela South Exploration Right subject to South African government approval.
President of Exxon’s exploration company, Stephen Greenlee, said: “We believe South Africa has significant potential and we will continue to look for additional opportunities there.”
The Tugela South Exploration Right covers about 2.8-million acres offshore Durban in KwaZulu-Natal. It has water depths extending from the coastline to approximately 6 500 feet [about 1.98 kilometres].
The future exploration rights cover an additional 16-million acres offshore with water depths extending from the coastline to approximately 9 800 feet [2.99 kilometres], ExxonMobil said.
The South African government has also given the company an exclusive rights permit to study the potential of the deep-water Durban Basin which covers about 12.4 million acres for a year and it can seek a permit if it wants to explore further.
Exxon is lagging behind rivals in finding new energy sources. It formed a partnership with Russia’s Rosneft last year to increase its access to resources in the Arctic and Black Sea region.
In a report earlier this month, Exxon raised its long-term global energy-demand growth estimate to 35 percent from 32 percent as expanding populations in Africa andIndia use more electricity.
Source :africanbusinessreview.co.za
