BHP Billiton buys Global Energy Holdings’ remaining stake in South African block

offshore sa-strocchi flickrBHP Billiton has now 100 per cent stake in the offshore block. (Image source: Strocchi/Flickr)Australian mining firm BHP Billiton has announced that it has bought the remaining 10 per cent interest from Global Energy Holdings in an offshore block in the Orange Basin of South Africa

US-based Global Energy Holdings said that it has sold its carried 10 per cent stake in Block 3B/4B to BHP Billiton, which already operates the block with remaining 90 per cent interest.

The terms of the deal, however, have yet to have been disclosed.

Block 3B/4B covers 28,839 sq km in waters ranging from 300 to 2,500 meters deep. BHP Billiton had acquired its initial 90 per cent stake of under a farm-in agreement signed with Global Energy Holdings in 2005.

Randall C Thompson, manager of Global Energy Holdings, said that the transaction validated his company’s business model of identifying and acquiring licences in offshore deep-water basins usually devoid of any significant exploration activity.

Thompson also hinted at the possibility that a new venture in a new country was on the cards.

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