ExxonMobil inks deal to begin exploration offshore South Africa

Posted on 18 December 2012

ExxonMobil Exploration and Production South Africa will soon begin exploration activities offshore South Africa. The company has signed an agreement with Impact Africa Ltd, a subsidiary of Impact Oil & Gas Ltd, to acquire a 75% participating interest in the Tugela South Exploration Right and will become operator to begin exploration activities.

Under the agreement, the ExxonMobil 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 approval by the South African government.

The Tugela South Exploration Right covers approximately 2.8 million acres offshore the city of 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 has also 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. A technical cooperation permit is an exclusive right to study an 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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