The Minister of Mineral Resources has awarded Shell South Africa Upstream B.V. an exploration right in the Orange Basin Deep Water area off the north-west coast of South Africa.

The exploration area covers just over 37,000 square kilometers and is located approximately 150 kilometers to 350 kilometers offshore in water depths between 500 meters and 3,500 meters. So far, there has been limited exploration activity in the area.

“I am delighted that we have been granted exploration rights offshore South Africa” said Bonang Mohale, Chairman & Country General Manager: Commercial, Shell South Africa. “The Orange Basin offers an exploration opportunity ideally suited to the application of Shell’s proven deep-water technology.”

In the first three years of the right, Shell will conduct studies and collect seismic data to evaluate the basin and determine whether there is the possibility of hydrocarbons being present. Further exploration activities will be determined by results from this activity. The deep-water portion of the Orange Basin has evidence of source rocks which have the potential for significant commercial oil and gas discoveries, although it is as yet largely unexplored and it may be some years before the potential will be apparent. Any discoveries would be assessed for potential development to the benefit of both the country and its people.

Shell will, as part of the Mineral and Petroleum Resources development framework in South Africa, make a contribution to the Upstream Training Trust, pay its annual exploration fees to Petroleum Agency SA and provide a financial provision for environmental rehabilitation in accordance with applicable regulations.

Shell South Africa Upstream B.V. holds 100% of the license.

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