CAPE TOWN - South Africa has signed a multi million dollar deal with a Russian company to develop oil and gas blocks in the country.
PetroSA and Rosgeo, a Russian geological exploration company, have signed an agreement for investment in oil and gas development worth around $400 million. The deal was signed at the 9th BRICS summit in Xiamen in China.
The deal includes the development in exploration parts of blocks 9 and 11a off the South African South Coast. Rosgeo is also supposed to conduct a large amount of the geological exploration work.
It is expected that they will remove more than 4000 square km of 3D seismic operation, more than 13000 km of gravity magnetic exploration works and also drill exploratory wells.
The project is expected to extract gas up to 4 million metres of gas daily. The gas will then be transported to PetroSA’s Gas-To-Liquids refinery in Mossel Bay.
Luvo Makasi, the Chairman of the Central Energy Fund, Nhlanhla Gumede the Interim Chairperson of PetroSA and Roman Panov the CEO of Rosgeo signed the agreement.
Panov emphasised that inside the framework of the Rosego contract advanced technology will be used to such as 3D exploratory works and modern seismic and drilling vessels.
According to Panov the agreement is aimed at developing relations mutually and strengthen the presence of Rosgeo in the African market.
Maskasi said that the search for gas and oil resources in the South Africa is very crucial for the energy security for the country and necessary for PetroSA’s survival. Maskasi further added that oil and gas potential is some part unchartered territory and that it will help expand our diminishing gas resources.
Gumede said that the agreement will symbolise development towards creating a new momentum for the company and move PetroSA towards growth.
Finding gas and oil in blocks 9 and 11a would give rise to the much desired explorative activities and the shore and off the shore. PetroSA and the country will benefit from it.
Gumede said that it will cheaper to feed into the refinery in Mossel Bay.