PetroSA and Cairn India Ltd. have signed an agreement to jointly explore for oil and gas off the coast of South Africa. The two companies said they signed a farm-in agreement, for an undisclosed amount, to explore in the Orange Basin Block 1 on the west coast of South Africa.

Cairn India will hold a 60% interest in the block and will be the operator and PetroSA will hold the remaining 40% stake.

Block 1 covers an area of 19,922 sq km in the Orange Basin near the Namibian border. Other companies set to explore in the basin are Shell and Anadarko.

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