ExxonMobil Lands Offshore South Africa
ExxonMobil’s affiliate, ExxonMobil Exploration and Production South Africa Ltd., signed an agreement with Impact Africa Ltd. (Impact), a subsidiary of Impact Oil & Gas Ltd., which will give it a 75% stake in the Tugela South Exploration Right. ExxonMobil will also become the operator of the concession.
Under the agreement, the company’s affiliate also has the right to acquire 75% participating interests in future exploration rights in three offshore areas covered by technical cooperation permits currently held by Impact. These exploration rights and the affiliate’s participating interest in them are subject to South African government approval.
The Tugela South Exploration Right covers approximately 2.8 million acres offshore Durban on the east coast of South Africa with water depths extending from the coastline to approximately 6,500 ft. The future exploration rights cover an additional 16 million acres offshore with water depths extending from the coastline to approximately 9,800 ft.
Separately, the ExxonMobil affiliate also has executed a technical cooperation permit with the South African government to study the hydrocarbon potential of the Deepwater Durban Basin covering approximately 12.4 million acres offshore Durban. Under the technical cooperation permit, ExxonMobil had the exclusive rights to study the area for one year. The ExxonMobil affiliate can apply to the South African government for an exploration right if it chooses to explore this area further.
“We look forward to working with Impact and the South African government to explore for oil and gas in this new area for ExxonMobil,” said Stephen M. Greenlee, president of ExxonMobil Exploration Company. “We believe South Africa has significant potential and we will continue to look for additional opportunities there.”
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