Royal Dutch Shell Plc is planning to acquire an oil-block stake in a second deal in South Africa\u2019s relatively unexplored waters, months after a major discovery by Total SA boosted the country\u2019s hydrocarbon prospects.<\/p>\n
Shell has applied to take a stake in a license owned by OK Energy, located in deep waters off South Africa\u2019s west coast, according to Petroleum Agency South Africa.<\/p>\n
“We have indeed received an application which is awaiting ministerial approval,” the regulator said in a reply to questions about the block.<\/p>\n
The Anglo-Dutch major exited its Orange Basin permit two years ago, citing an enduring low-price environment. It also complained at the time of uncertainty over resource laws in South Africa. The country recently pledged to draft separate legislation for oil and gas.<\/p>\n
Shell didn\u2019t immediately comment about the stake in OK Energy\u2019s license. Should the deal go through, it would add to the company\u2019s acquisition of a 40% interest in deep-water blocks 5, 6 and 7 in the Atlantic off Cape Town from Anadarko Petroleum Corp.<\/p>\n
In February, Total discovered an estimated 1 billion barrels of oil equivalent east of Anadarko\u2019s blocks, where the oceans meet at the tip of the continent. South Africa\u2019s first deep-water find was described as \u201ccatalytic\u201d for the country by South African Oil & Gas Alliance, an industry lobby group.<\/p>\n
Besides the block Shell is interested in, OK Energy, a small oil and gas company, also holds a 10% stake in another area with Equinor ASA off South Africa\u2019s east coast.<\/p>\n