Rosgeo, PetroSA to develop two South African shelf blocks

MOSCOW, Sep 4 (PRIME) -- Russian state geological exploration company Rosgeo has signed a U.S. $400 million agreement with South African state oil and gas company PetroSA to develop blocks 9 and 11a of the South African shelff, the Russian company said in a statement on Friday.

“Within the framework of the agreement, it is supposed to conduct a considerable volume of geological exploration works. In particular, it is planned to carry out more than 1,500 square miles of 3D seismic operations and over 8,000 miles of gravity-magnetic exploration works, as well as drilling of exploratory wells,” the company said.

Oil reserves of the two blocks are estimated at more than 50 million tonnes, while reserves of natural gas exceed 400 billion cubic meters and forecasted resources of gas amount to 1.2 trillion cubic meters.

The blocks’ development encompasses production of up to 4 million cubic meters of gas a day and transportation of the produced gas to gas-to-liquids refinery Mossel Bay, the company said.

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