Cairn India joins PetroSA in offshore South Africa block

Cairn India will take on a 60 per cent interest in the block through its wholly-owned subsidiary, while PetroSA will remain as operator of the block and will hold the remaining 40 per cent interest.

The closure of the transaction will remain subject to approval from South African regulators.

Everton September, vice president for new ventures at PetroSA, said, “Cairn India brings with it extensive geo-technical and operating capabilities that will combine very well with our experience and understanding of the region.

“We have a shared mindset, and together are extremely well placed to realise the full potential of Block 1.”

Block 1, measuring 19,922 sq km, is located in the Orange Basin on the north-western border between South Africa and Namibia.

Cairn India strategy director P Elango remarked, “This is an important first step for [Cairn India’s] growth beyond the Indian sub-continent.

“We see an attractive opportunity to leverage our capabilities in a rapidly-emerging area and aspire to build a wider business in the region.”