Shell approved as South African bidder

THE HAGUE, Netherlands, Nov. 5 (UPI) -- Royal Dutch Shell announced it was approved as a bidder for exploration rights in the Orange Basin in the South Atlantic by South African petroleum authorities.

Shell said the exploration area under the deal covers more than 14,000 square miles off the west coast of South Africa. The deepwater area of the Orange Basin field lies in waters ranging from 1,600 to 13,000 feet, limiting previous exploration activity.

"The Orange Basin offers an exciting frontier exploration opportunity to apply the deepwater technical ability we have built up around the world over the past three decades," said Ceri Powell, executive vice president for international exploration at Shell.

Reserve estimates for the Orange Basin are considered significant. South Africa holds an estimated 15 million barrels of oil reserves and more than 300 billion cubic feet of proven natural gas reserves.

The venture marks the first time Shell moves into oil and gas exploration in South Africa. The company said it would now enter into negotiations with the South African government on the contract.