Cairn India has acquired majority stake in an oil and gas exploration block on the west coast of South Africa.The company has acquired 60 per cent stake from PetroSA. The block comprises an existing gas field, discovered in 1987. Cairn India would conduct seismic surveys and carry out initial exploration drilling. The time taken to begin production would depend on the nature and volume of hydrocarbons found.
Cairn India would be the operator in the block, while PetroSA, owned by the South African Government, would hold the remaining interest. The closure of the transaction is subject to regulatory approvals from the South African Government. Cairn India would hold the stake through a wholly owned South African subsidiary. The company has signed a farm-in agreement for exploration in offshore Block 1 that covers 19,922 sq km and currently, initial stages of exploration are underway. The block has an existing gas discovery, as well as identified oil and gas leads and prospects. It is located in the Orange Basin, along the north-western maritime border between South Africa and Namibia.