Shell is entering Impact Oil and Gas’ Transkei and Algoa exploration right offshore South Africa, shortly after the exit of ExxonMobil and Equinor.

Shell’s BG International agreed the deal with Impact Africa. The farm-out will see Shell take a 50% working interest and the role of operator. Shell has a right to acquire another 5% if the joint venture chooses to move into the third renewal period. This is due in 2024.

Exxon and Equinor pulled out of Transkei and Algoa in August. The US company entered in 2012 and the Norwegians followed in 2017. “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,” said Impact’s CEO Siraj Ahmed

Click on the link below for full report

Source: EnergyVoice