Petrobras to Enter Deep Western Orange Basin in South Africa

Petroleo Brasileiro S.A. (Petrobras) is set to enter the Deep Western Orange Basin (DWOB) block in South Africa following the board’s approval of the company’s operations in the country. The approval enabled the company to enter into an agreement to acquire a 10 percent stake in DWOB through a competitive process conducted by TotalEnergies, the company said in a media release.

Petrobras said that upon the completion of the acquisition it would have a 10 percent stake in the DWOB block, and the consortium would be composed of TotalEnergies (operator and 40 percent owner), QatarEnergy (30 percent), Sezigyn Pty. (20 percent) and Petrobras.

The DWOB block is located in the deep waters of the Orange Basin, where TotalEnergies, Shell, and Galp made discoveries recently.

For Petrobras, the operation signifies diversification of the company’s exploration portfolio with value generation. It is also in line with the company’s long-term strategy, which aims to secure oil and gas reserves replacement by exploring new frontiers, both in Brazil and abroad, and acting in partnership, the company said.

The acquisition is subject to approval by local regulatory bodies.

Earlier Petrobras signed a memorandum of understanding (MoU) with the Argentinian energy company YPF S.A. to jointly develop business in the exploration and production segment. The companies agreed on an option to extend the MoU for another three years.

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