PetroSA approves Shell for 60% stake in Block 2C
South Africa’s national oil company PetroSA has approved a deal granting Shell Offshore a 60% stake in its Block 2C off the west coast, according to a document seen by Reuters on Monday.
Under the agreement, Shell will provide a $25 million signing bonus and cover the full cost of drilling three wells, estimated at $135–150 million. PetroSA currently holds 100% of Block 2C, pending completion of the deal, News.Az reports, citing Reuters.
The Orange Basin, where Block 2C is located, has gained attention as one of the world’s most promising oil exploration zones, following major discoveries in neighboring Namibia. Shell is also seeking to explore other offshore areas along South Africa’s west coast, having received approval in July to drill up to five deep-water wells in the Northern Cape Ultra Deep Block.
Court challenges and environmental concerns have delayed some of Shell’s planned projects. PetroSA, now part of the South African National Petroleum Company, oversees multiple assets including offshore acreage and a gas-to-liquid plant at Mossel Bay.
The national regulator, PASA, confirmed it has not yet received an application to transfer the Block 2C stake.
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