Private equity-backed player Azinam has set its sights on drilling an exploration well off South Africa targeting what it hopes could prove to be the country’s first major offshore oil producer, after agreeing a farm-in deal with Africa Energy.

The company, backed by Seacrest Capital, is taking a 50% stake in Block 2B in the Orange basin off the north-west coast, also taking over operatorship.

Simultaneously, Panoro Energy has also acquired a 12.5% stake from Africa Energy, leaving the previous majority partner on 27.5%.