Azinam and Panoro Energy have entered into a farmout agreement with Africa Energy for block 2B, offshore South Africa, which contains the A-J1 oil discovery.
Azinam is set to become operator of the block with a 50% interest, Panoro will secure 12% and Africa Energy will retain its 27.5% share in the block. The remaining 10% is held by Crown Energy.
“With this transaction, Azinam is positioned to deliver the first major oil production offshore South Africa. With A-J1 having flowed oil to the surface and with the benefit of a significant database of well and seismic information, Azinam believes that Block 2B has the potential to provide South Africa with its first major offshore oil production. This transaction will allow for a well to be drilled to test the wider potential of the A-J1 discovery. Azinam and partners are targeting 349 million barrels of oil,” Daniel McKeown, Managing Director of Azinam, said in a statement on Tuesday.
Block 2B is located in the Orange Basin and covers 3,604km2 off the west coast of South Africa, 300km north of Cape Town, with water depths ranging from 50 to 200 meters.