Upstream article.........Supermajors circling: a woman waves a South African flag near JohannesburgPhoto: AP/SCANPIX Supermajors eye prime Orange basin block Farm-out talks underway on South Africa licence ahead of 2023 exploration drilling 25 August 2022 12:57 GMT UPDATED 25 August 2022 13:25 GMT By Iain Esau in London The biggest stakeholder in a highly prospective Orange basin exploration block in South African waters is in farm-out talks with supermajors. Ever since TotalEnergies and Shell made their huge play opening Venus and Graff oil and gas discoveries offshore Namibia earlier this year, the Orange basin has become the worlds hottest new exploration play and is firmly in the sights of the big international oil companies. TotalEnergies readies wildcat campaign for southern Africa Read more One of the most attractive tracts in the basin is deep-water Block 3B/4B where Africa Oil and its partners, Eco Atlantic and Ricocure, aim to start an exploration campaign in 2023. Canada-headquartered Africa Oil and Eco Atlantic each have 20% stakes in the block, while Ricocure a privately owned company controlled by South African businessman Thabang Khomo currently holds a 60% interest. Ricocure is looking to reduce its stake to between 20% and 30%, according to Africa Oil chief executive Keith Hill. Rig mobilises for South Africa exploration well Read more Our local partner is out looking for a farm-in and I think they have a very high chance of success of attracting one of the majors. Ricocure is very keen to farm-out 30% to 40%, he told analysts two weeks ago, adding that Africa Oil may consider putting up to a 5% interest in the pot to attract a supermajor. Hill said Africa Oil will not give up operatorship for free and is happy to remain operator during the exploration phase. We feel pretty comfortable on exploration, he said. Chevron set to enter coveted block offshore Namibia Read more Details on Ricocures farm-out process are sparse and Upstream was unable to find a way to contact the company. Nevertheless, Hill said many major oil companies are interested. Another source familiar with the Orange basin scene suggested TotalEnergies and Shell may at the top of that list. Seismic warning: South Africa can kiss goodbye to energy security if marine surveys banned Read more There is big interest, the source added, with a healthy number of companies thought to have accessed a data room. Shell already operates an ultra-deepwater block in the Orange basin close to Venus, while South Africa is an exploration heartland for the French giant which, among others, controls two blocks next to 3B/4B, has 2023-2024 drilling plans for block 5, 6 and 7 offshore Cape Town and is working on a development plan off the south coast for its Luiperd and Brulpadda gas and condensate finds. Commenting on the prospectivity of the Orange basin, Hill said: We think this is going to be a fantastic place to be in the upcoming years, highlighting that it is eight times the size of the Guyana basin where ExxonMobil has had such enormous success and with which Africa Oil is familiar through indirect investments in companies there. South Africa could host 291 Tcf of gas and 27 billion barrels of oil government official Read more Block 3B/4B lies 120-250 kilometres offshore and covers an area of about 17,580 square kilometres in water depths ranging from 300 to 2500 metres. The license was previously held by BHP Billiton which acquired a 10,000 square kilometres of 3D seismic data in 2012, according to Eco Atlantic, pointing out that Shell acquired a further 8000 square kilometres of 3D to the north of the 3B/4B, which is on strike with BHPs survey. In addition, 1400 kilometres of vintage 2D seismic data also spans 3B/4B. Stay a step ahead with the Upstream News app Read high quality news and insight on the oil and gas business and its energy transition on-the-go. The News app offers you more control over your Upstream reading experience than any other platform. Read more South Africa: Eco Atlantic boosts stake in exciting Orange basin block where two probes could be drilled in 2023 Namibia: Galp gears up to spud wildcat next year Lunn rewriting South Africas oil strategy Namibia: Galp galvanised amid scramble to grasp impact of huge discoveries TotalEnergies prepares for new Orange basin wildcat campaign Upstream is part of NHST Media group. To read more about NHST Media Group, click here ADVERTISE TERMS ABOUT US CONTACT US FAQ PRIVACY POLICY COOKIE SETTINGS