PetroSA Acquires Stake in Jubilee Oil Field

PetroSA has established a strategic presence in oil-rich Ghana through the purchase of a stake in one of West Africa’s most prolific oil acreages, Ghana’s Jubilee Field, through the acquisition of Sabre Oil and Gas Holdings Ltd. The purchase has received the consent of Ghana’s Minister of Energy Dr Joe Oteng-Adjei, following approval of the acquisition by South Africa’s Minister of Energy, Ms Dipuo Peters, in February 2012. It followed a bidding process that saw PetroSA shortlisted with two other international oil companies. PetroSA bought out Sabre’s interest in three assets: the producing Jubilee Field, the Deepwater Tano Block and the West Cape Three Points Block.

Ms Nosizwe Nokwe-Macamo, PetroSA’s Group CEO, said the acquisition was part of the South African National Oil Company’s concerted strategy to increase its African footprint. The deal is consistent with PetroSA’s strategy to be a significant oil and gas player, and comes on the heels of memoranda of understanding recently concluded with various international oil companies, including China’s state-owned Sinopec Group, Italian giant ENI, Mozambique’s PetroMoc and the Korea National Oil Corporation. The Sabre Oil and Gas Holdings Ltd acquisition increases PetroSA’s reserves and gives the company, which has so far been heavily dependent on income from its Gas-to-Liquids Refinery in Mossel Bay, immediate access to a new source of revenue.

“This deal provides PetroSA with a unique opportunity to establish a presence in this highly-prospective region. We are very happy to be working with reputable partners such as Anadarko, Kosmos, Tullow and, of course, our counterparts, the Ghana National Petroleum Corporation,” Ms Nokwe-Macamo said. “This is a significant opportunity for PetroSA. As a result of it, we will be able to increase our reserve portfolio,” she added.

The Jubilee oil field is located 60km off-shore, straddling the Deepwater Tano and West Cape Three Points blocks in Ghana. It was discovered in 2007 and production commenced in 2010. It is the largest field in Ghana, with total proven reserves of around 600 million barrels.

Both the Deepwater Tano Block and the West Cape Three Points Blocks have existing oil and gas discoveries for which developments plans are in progress.