PetroSA Grabs Gas Exploration License in Namibia

PetroSA Grabs Gas Exploration License in Namibia

Petro SA 12-16-2006

State oil and gas company PetroSA has acquired a 10% participation interest for the exploration of gas in the northern and southern offshore blocks off the Oranjemund coast of Namibia, extending the company’s reach into Africa.

This venture is PetroSA’s second into Namibian waters and is in line with the company’s aggressive growth strategy to remain sustainable. PetroSA aims to increase its output to 65,000 barrels of oil a day by 2010.

PetroSA’s partners in the venture are BHP Billiton, with a 75% interest, and Mitsui Atlantic Energy with the balance.

BHP Billiton has been awarded the license to operate the blocks and PetroSA expects to bring additional technical capability and expertise to the consortium.

The blocks are in the northern part of the Orange Basin, adjacent to the Kudu gas field to the east and in the general vicinity of the Ibhubesi gas field to the southeast. While the Orange Basin was considered an immature basin, significant gas discoveries on the shelf area have proven that a working petroleum system exists, according to PetroSA.