Cape Town - The South African petroleum authorities have confirmed Royal Dutch Shell plc as the successful bidder for exploration rights in the Orange Basin deep-water area, off the country's west coast.

Shell and government would now negotiate the details of an exploration contract, the company said in a statement on Thursday.

The exploration area covered about 37 000 square kilometres - about the size of the Netherlands.

It was located in water between 500m and 4 000m deep and had so far seen limited exploration activity.

"The Orange Basin offers an exciting frontier exploration opportunity to apply the deep water technical ability we have built up around the world over the past three decades," Shell executive vice president for international exploration Ceri Powell said.

Shell had been active in retail in South Africa since 1904 and in refining since 1963.

This was the first time Shell would be involved in exploring for oil and gas in South Africa.

Royal Dutch Shell plc was a leading global energy company whose subsidiaries employed 102 000 people and operated in more than 100 countries and territories.

Shell engaged in exploration and production of oil and natural gas, refining and marketing of transportation fuels and other oil products, producing chemicals, and developing renewable energy, the company said.

- Sapa