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Africa-focused exploration company Impact Oil & Gas Limited has completed the farm-out of 50 percent working interest and operatorship in the Transkei & Algoa exploration right offshore South Africa to oil major Shell.
Impact Oil & Gas stated that the transaction was completed between its wholly owned subsidiary Impact Africa Limited and BG International Limited, Shell’s wholly owned subsidiary.
Following the completion of the transaction, Shell holds a 50 percent participating interest in the Transkei & Algoa blocks as well as the operatorship while the remaining 50 percent is held by Impact Africa Limited.
Impact Oil & Gas also said that the South African Government granted the Second Renewal Period of the license. This is a two-year exploration period that started in August 2021. Impact and Shell intend to proceed with the acquisition of approximately 2,316 square miles of 3D seismic during 2022.
“We are very pleased to have concluded this transaction with Shell – a world-class operator with deepwater expertise,” Siraj Ahmed, CEO of Impact Oil & Gas, commented. “We look forward to working with Shell to build on the considerable work done to date and further explore this exciting exploration province,” Ahmed added.
“This transaction, and the proposed 3D seismic acquisition program, enables Impact to deliver on its objective of accelerating the exploration of the transform margin of the South African Natal Trough, which Impact believes has significant potential,” Ahmed continued.
It is worth noting that Impact and Shell entered into an initial farm-out agreement back in November 2020. Shell also has the option to acquire an additional 5 percent working interest if the joint venture chooses to move into the Third Renewal Period. This renewal period is expected to be approximately in 2024.
Transkei & Algoa, also known as Exploration Right 12/3/252, is located offshore eastern South Africa and covers approximately 17,698 square miles in water depth up to 9,842 feet. The license was initially awarded to Impact Africa Limited as a Technical Cooperation Permit in 2012, followed by an application for an Exploration Right, which was granted in 2014.
The Algoa block is situated in the South Outeniqua Basin, near TotalEnergies’ two major discoveries – Brulpadda and Luiperd-1X. As for the Transkei block, it is situated north-east of Algoa in the Natal Trough Basin where Impact has identified highly material prospectivity associated with several large submarine fan bodies which must be further explored with focused 3D seismic data and then potential exploratory drilling.
