OVERVIEW
Oil and gas A production rights request follows significant offshore gas finds. SECTOR INSIGHT The national regulator has approved a gas plant for Richards Bay.
Exploration off the southern coast has produced excellent results.
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otalEnergies has applied to Petroleum Agency South Africa (PASA) to convert its exploration right into a production right, a move that may have major significance for the oil and gas sector in the region. The TotalEnergies-led consortium, after making world-class discoveries off South Africa’s southern coast off Mossel Bay in the Outeniqua Basin, has now made the decision to proceed to the next phase. The exploratory drilling campaign employed 195 South Africans with specialist skills, but the potential spinoff is enormous for the SOUTH AFRICAN BUSINESS 2024
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Western Cape and South Africa, if the find leads to drilling and commercialisation. As David van der Spuy, Manager: Resource Evaluation Manager at PASA, explains, “It is critical for the development to go ahead, not only because it will avert the closure of the gasto-liquids (GTL) plant in Mossel Bay and the loss of 1 500 direct jobs, but also because of the economic effects this will have on the surrounding area.” PASA has noted the significance of international oil companies committing to exploration off South Africa’s coast and has a stated goal to move beyond exploration to development and production. More exploration will guarantee that interest is maintained. The next phase of the project, a gas-market development period, is not the same as an immediate decision to start building pipelines and decks, but it is a step along the way. The Luiperd and Brulpadda discoveries were made in the Block 11B/12B areas. The joint venture has decided to give up a northern portion of its right, reducing the proposed area to be PHOTO: Anton Swanepoel
