Norway’s Statoil (NYSE:STO) has moved into an exploration project offshore South Africa via a deal with ExxonMobil (NYSE:XOM).
Statoil has inked a deal with Exxon to acquire a 35% interest in the Tugela South project, which spans more than 9,000 square kilometres of South Africa’s eastern coast.
It marks Statoil’s first venture in South Africa.
In the initial exploration period, between now and 2017, the partners will acquire 1,000 square kilometres of 3D seismic.
This will build on 2D gathered in 2011 and 2013 by Impact Oil & Gas, an unlisted junior which has 25% of the project having farmed-out to Exxon back in 2012.
There aren’t any commitments to drill wells during the current exploration period.
“This opportunity is in line with Statoil’s exploration strategy of access at scale,” said Nick Maden, Statoil senior vice president.
“It represents access into a frontier basin where we believe we see indications of an active petroleum system and which has impact potential.”
“We look forward to working with ExxonMobil, Impact Africa and the South African government to explore for oil and gas in this new area for Statoil.”
Mike Doherty, Impact executive chairman, described the addition of Statoil as “an important milestone” and said it was a further endorsement of the acreage’s significant potential.
“We are delighted to welcome a partner of Statoil’s calibre to Tugela South and are excited to be working alongside them and ExxonMobil to further explore this promising exploration permit,” he said in a statement.