Canadian Natural Resources Farms out Block 11B/12B Offshore South Africa

Canadian Natural Resources Limited (CNR) and Total E&P South Africa BV will jointly explore Block 11B/12B offshore South Africa. The farm-out agreement will provide Total with a 50 percent working interest in the block and the right to operatorship, with CNR receiving an undisclosed upfront cash payment, a recovery of 50 percent of past incurred costs and a carry in the first exploration well drilled, up to a maximum of $150 million.

CNR has performed seismic studies on Block 11B/12B and now the newly formed consortium will work towards finalizing the location of the initial exploration well. Drilling is slated for 2014.

The Calgary-based energy firm chose Total after a "lengthy and thorough process" because of its expertise in deep water exploration. 

"The exploration potential in this offshore area of South Africa is exciting,” commented Steve Laut, president of Canadian Natural, in a press release. “We are pleased to have the opportunity to work together with Total, a world class partner. The completion of this joint venture demonstrates the opportunities provided to the company through its international portfolio which contributes to our vast and diversified asset base. Working together with Total and the Government of South Africa, we are in a positive position to maximize shareholder value in this exciting prospect."

Situated in the Outeniqua Basin, Block 11B/12B lies 109 miles off the southern coast of South Africa and spans 4.6 million acres. Water depths range from 656 to 5,905 feet. 

Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  LyondellBasell Plans Its Largest Inves... (Jul 21)
 -  Preparing a Mechanical Engineering Res... (Jul 19)
 -  Tesoro Signs Deal with Pemex to Enter ... (Jul 19)
 -  Irish Gas Grid Could Receive LNG from ... (Jul 19)
 -  What's It Take to Land a Job as a Petr... (Jul 14)

Most Popular Articles

From the Career Center
Jobs that may interest you
Load Planner/ Dispatcher Frac Sand
Expertise: Dispatcher|Project Management
Location: Mansfield, TX
United States Houston: Marketing Specialist
Expertise: Business Development|Marketing|Sales
Location: Houston, TX
Intelligence & Risk Assessment Analyst
Expertise: Legal|Risk Management
Location: San Ramon, CA
search for more jobs

Brent Crude Oil : $48.06/BBL 2.51%
Light Crude Oil : $45.77/BBL 2.17%
Natural Gas : $2.97/MMBtu 2.30%
Updated in last 24 hours