Eni to acquire stake in South African offshore exploration permit

Italian energy firm Eni has agreed to acquire a 40% stake and operatorship in exploration right permit 236 (ER236) in South Africa from Sasol Petroleum International.

The permit allows the company to explore for hydrocarbons on an 82,000km² area along South Africa’s east coast in the Durban and Zululand basins offshore Kwazulu-Natal province.

The Petroleum Agency of South Africa (PASA) granted the permit to Sasol in November 2013 and the latest agreement is subject to government approval.

Sasol Petroleum International, the upstream oil and gas subsidiary of Sasol, will retain the remaining 60% stake in the permit.

Eni, which already has an exploration presence in Mozambique and Kenya, said the agreement with Sasol signals better cooperation between both the firms in southern Africa.

Sasol CEO David Constable said: "The establishment of our partnership with Eni in respect of our offshore South African interests complements Sasol’s strategy to develop sustainable energy solutions, which will serve to ensure all-important economic growth and development in southern Africa and the broader region.

"In addition, accelerated exploration activity, as represented by ER236, will have many positive benefits for South Africa and the broader region, in terms of energy security and increasing levels of international investment."

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Image: Eni Rome headquarters. Photo: courtesy of Eni.