The South African Petroleum Authorities (Petroleum Agency SA) has awarded Shell a Technical Cooperation Permit for a one-year study to determine the hydrocarbon potential in parts of the Karoo Basin in central South Africa.

The permit covers an area of approximately 185 000 km².

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

“This onshore study and the recent award of offshore exploration acreage in the Orange Basin area together reinforce Shell’s interest in exploring for oil and gas in South Africa," said executive vice-president for international exploration Ceri Powell.

Petroleum Agency SA gave Shell the rights to explore 37 000 km² in the Orange deep-water basin in November.