Eni has gained operatorship and a 40% interest in exploration right permit 236 (ER236) off the eastern coast of South Africa from Sasol, the Italian company announced today.
Under the terms of the agreement, Eni has acquired 82,000sq km of unexplored acreage in the Durban and Zululand basins within the Kwazulu-Natal province. The financial terms were not disclosed. Sasol originally acquired the 3-year permit in November 2013 by the Petroleum Agency of South Africa.
Lately, Eni has been ramping up activity in eastern Africa, identifying Mozambique and Kenya as “key areas” in its 2014-2017 Plan and ramping up its spending in Sub-Saharan Africa exploration 13% from 4Q 2012 to 4Q 2013. The company announced in April that it was considering building a floating liquefied natural gas plan offshore northern Mozambique. It has formally submitted requests for FEED proposals.
Most recently, in May, the Italian giant announced a successful twelfth well drilled in Area 4 off Mozambique, which it operates with a 50% indirect interest owned through Eni East Africa. Area 4 is estimated to hold more than 150Tcf.
Prior to stepping down, then-CEO Paolo Scaroni met with Armando Guebaza, President of Mozambique, to discuss Eni’s plans for the country.
The agreement is subject to the approval of the South African government.
Image of CEO Claudio Descalzi from Eni.
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