The largest exploration company in Russia, Rosgeo has signed an agreement to develop blocks off the South Coast of South Africa.
Rosgeo provides a full range of exploration services from regional surveys to parametric drilling and subsoil monitoring.
The agreement between the company and South Africa’s state oil and gas corporation PetroSA will see it carry out more than 1, 500 square miles of 3D seismic operations; over 8, 000 miles of gravity-magnetic exploration works; and drilling of exploration wells.
It is aimed at developing bilateral relations between South Africa and Russia as well strengthening the company’s presence in the African market.
Rosgeo assured that it will use the most advanced technologies, including 3D exploratory works, and modern seismic and drilling vessels in the project.
Luvo Makasi, Chairman of the Central Energy Fund (CEF)said the agreement will contribute to the formation of the hydrocarbon market in South Africa.
With oil reserves estimated at more than 50 million tons, gas over 14 trillion cubic feet and the forecasted gas resources 42 trillion feet, the project expects to extract up to 140 million cubic feet of gas daily providing the required volume of raw materials to the Mossel Bay Plant.
The estimated volume of investments is $400 million.
The agreement on development of blocks 9 and 11a, off the South Coast of South Africa, was signed by Roman Panov, CEO and Chairman of Rosgeo’s Management Board, Chairman of PetroSA Nhlanhla Gumede and CEF’s Makasi at the 2017 BRICS Summit in China.
BRICS is the acronym for the association of the five major emerging national economies of Brazil, Russia, India, China and South Africa whose heads of states are currently holding a summit in Xiamen, China to take stock of their decade-long cooperation and draw a blueprint for future development under the theme: “BRICS: Stronger Partnership for a Brighter Future”.