Russia's Rosgeo, South Africa’s PetroSA Ink Partnership
South Africa’s state-owned producer PetroSA has signed an agreement to partner Russian geosciences firm Rosgeo in exploring offshore South Africa. The agreement was signed September 4 at the BRICS Summit in Xiamen, China.
Rosgeo will carry out more than 4,000 km2 of 3D seismic operations and over 13,000 km of gravity-magnetic exploration works, as well as the drilling of exploration wells, in blocks 9 and 11a offshore the south coast of South Africa. Both firms estimate required investment at some $400mn.
A PetroSA spokesman told NGW that both blocks are in deep waters close to Mossel Bay and relatively unexplored; he said the exploration project will be funded by Rosgeo, adding that PetroSA sees the Russian firm as a sustainable partner for the long term.
Both firms see the aim being to produce 4mn m3 per day (1.5bn m3/yr) to be sent to PetroSA’s Gas-To-Liquids unit at Mossel Bay. PetroSA said late 2016 it was running low on gas for its Mossel Bay GTL unit and considering the use of alternative liquid feedstock.
Rosgeo CEO Roman Panov said that Rosgeo will use advanced technologies, including 3D exploratory works, and modern seismic and drilling vessels: "The signed agreement is aimed at developing bilateral relations and will strengthen Rosgeo’s presence in the African market.”
Luvo Makasi, chairman of South African state Central Energy Fund, which oversees PetroSA, said the search for oil and gas resources in South Africa remains very strategic for the country’s energy security and was extremely important to PetroSA’s continued and sustainable survival.
PetroSA interim chairman Nhlanhla Gumede added: “A find in blocks 9 and 11a would result in much-desired exploration activity of our onshore and offshore oil and gas potential." The country and PetroSA would benefit greatly from any finds, he added.
What’s less clear is how Rosgeo, not a traditional oil or gas producer, will be remunerated – and if it will get saleable equity in return for its investment.
Rosgeo may possibly be a forerunner for other Russian firms. Russian state oil giant Rosneft together with US supermajor ExxonMobil have three deepwater exploration blocks offshore Mozambique. Gazprom relinquished an interest in the Kudu gasfield offshore Namibia a few years ago.
John Fraser, Johannesburg