The largest oil producer in Europe, Royal Dutch Shell Plc, may commence drilling operations in the northwestern coast off South Africa by next year. This comes after intense study was conducted on the geological data from the area.

The Hague based energy company had purchased 8,000 square kilometers or 3,088 square miles of 3-D seismic data at the Orange Basin. This was confirmed by Shell South Africa General Manager Jan Willem Eggink during an interview held in Johannesburg yesterday. The said information was being processed and would be ready by December, according to Eggink.

Shell also began an environmental impact study, which according to Eggink would be used 'so that if we will go ahead to drill a well we will be ready.' He added that the timing of a prospect would be factored in together with rig availability and the current weather conditions. He also confirmed that because of the deep waters of the area, each well would cost between USD150 million and USD200 million.