Shell awarded rights to explore natural gas potential in the Karoo

Shell have been awarded a permit to undertake a one-year study of the hydrocarbon potential of the Karoo Basin. The permit was awarded by the South African Petroleum Authorities (Petroleum Agency SA) and covers an area of approximately 185 000 km2.

Shell will seek to determine the scope for natural gas exploration by examining the area's geology, and will have the exclusive right to apply for exploration permits after completing the study.

Only a month ago, Petroleum Agency SA gave Shell the rights to explore 37 000 km2 in the Orange deep-water basin.

Reported by Engineering News