Russian exploration company, Rosgeo on Monday at a meeting in Xiamen, China, signed a $400 million gas drilling deal with PetroSA, a South African oil company, to help in sustaining the availability of gas in the country.
PetroSA’s gas-to-liquid plant has in recent times suffered a decline in oil output resulting in a shortage of gas in the country hence the need to sign a contract with Russian exploration company Rosgeo to help drill oil from the southern coast of South Africa.
“The project envisages extraction of up to 4 million cubic metres of gas daily. This will subsequently be delivered to PetroSA’s gas-to-liquids refinery,” PetroSA said in a statement.
Rosgeo will carry out the contract by using seismic and drilling vessels to explore South Africa’s south coast.