Opportunity - Issue 94

INTERVIEW
PASA exploring
South Africa’s
MANY PROSPECTS
Dr Phindile Masangane joins Petroleum Agency South Africa (PASA) as Chief Executive Officer at a time
when the country is developing a domestic gas market anchored on indigenous gas production. This is
something that she looks forward to and can draw on her experience to contribute towards achieving.
Please tell us about the history of Petroleum Agency SA.
Petroleum Agency SA (PASA) has its roots in the Petroleum Licensing
Unit of the then national oil company, Soekor (the predecessor of
PetroSA). In 1999, following the Norwegian model, it was decided that
regulation of the oil and gas upstream industry should be separated
from the national oil company, and the Agency was formed through a
ministerial directive.
The Agency has successfully attracted major explorers to South
Africa and facilitated the acquisition of many new large seismic surveys
and some exploratory drilling, through a period affected by legislative
issues and a major oil price crash. The company has grown from an
organisation of about 25 staff members to 85 today and is held in very
high regard by the local and international oil and gas industry that it
serves. Currently, the Agency is actively involved in shaping the new
stand-alone upstream legislation and in guiding government with its
decisions regarding the possible exploration for shale gas.
What is PASA’s core business function?
PASA has three main functions, as follows. The first is to attract
investment to South Africa’s oil and gas upstream industry, in other
words, investment into exploration and production of oil and gas in South
Africa. We have a team of geologists and geophysicists who interpret data
gathered through past exploration activity to determine prospectivity,
and use this to attract exploration companies to South Africa.
The second function of PASA is to regulate the upstream industry in terms
of the Mineral and Petroleum Resources Development Act, its regulations
and other applicable legislation. The Agency has staff responsible for
ensuring legal, technical and environmental compliance as organisations
enter into contracts with the state to explore for oil and gas.
The third function is to act as the national archive for all data and
information produced during oil and gas exploration and production
in South Africa and to curate and maintain this data for use and
distribution.
Other functions include advising the government on any issues
pertaining to oil and gas as well as carrying out any special
projects, as directed by the government.
What is PASA’s purpose in South Africa’s energy sector?
From the above, it is clear that the Agency is the regulator
for South Africa’s oil and gas upstream industry. However,
the Agency by no means sees its role as only reactive. On the
contrary, it is one that is proactive and the Agency’s purpose
is to facilitate and regulate oil and gas exploration to achieve
production of indigenous oil and gas. This will ensure energy
security and bolster economic growth, and play a strong role in
addressing the eradication of poverty in South Africa.
South Africa has committed to reducing its carbon footprint
and natural gas can play a role in this. South Africa is currently
heavily dependent on coal as a primary energy source and the
substitution of natural gas for some percentage of electricity
generation, as envisaged in the National Development Plan, could
assist with South Africa reaching its goals in terms of carbon
emissions. The Agency’s main role in this is to attract and
facilitate the activities of explorers for indigenous gas.
You have recently taken over the position as CEO of PASA – and you are
the first formally appointed female CEO. Can you please share with us
some of your ideas in terms of plans and strategies for growing and
improving PASA.
South Africa has a very good petroleum resource potential which
remains unexplored. Before 1994, we didn’t have international
oil companies in the country due to political sanctions. So all the
exploration activities for oil and gas in South Africa were undertaken
by the then state-owned company, Soekor (pre-cursor of PetroSA).
Oil and gas exploration is a highly capital intensive
and high-risk business that cannot be left to a national oil
12 | www.opportunityonline.co.za