Opportunity - Issue 94

INTERVIEW
company to do alone. In the democratic era, we
have attracted a number of international oil and gas
companies including the majors like Shell, Total and
ExxonMobil and have seen a number of our blocks
being licensed. Significant exploration activity in terms
of 2D and 3D seismic data collection has taken place
since then, mainly by international oil companies.
We are at the stage where we need to enter the next
phase in terms of exploration – that of significant
drilling activities. This is what we need: a move to
proving the resources we have. That would be the
game-changer for South Africa’s upstream oil and
gas industry. The recent discovery by Total and its JV
partners in Block 11B/12B (Brulpadda) is the first giant
step in that direction.
Offshore, there is currently ongoing exploration of
the prospects close to the Brulpadda discovery. Odfjell’s
Deepsea Stavanger oil rig is on its way to South Africa
from Norway, and should arrive around the 12th of
August. It will drill the Luiperd (more correctly the
Luiperdpadda) prospect which is the second of five
prospects in the group. There is an option to retain the
rig in South Africa for further drilling. The Brulpadda
well discovered light oil and gas condensate, but the
phase in the other prospects can only be determined
through drilling. Future development of the
discovery is highly dependent on the
success of this further drilling. Possible
development could see gas condensate
being piped to the PetroSA
facility in Mossel Bay, but these
decisions are ultimately up to the
operator, Total, and its partners.
My role is to work with industry
and the department to fast-track
these developments including
finalising the Upstream Resource
Development Bill. As we enter this
phase in our industrial development,
we want to ensure that it is an inclusive
and diversified industry in terms of race,
gender and participation of SMEs.
What would you consider to be PASA’s biggest
challenge/s ahead?
South Africa is playing catch-up
in terms of upstream oil and
gas development compared to
other countries in the region.
With the correct policies,
fiscus proposition and
domestic industry off-take
opportunities we can win.
PASA’s challenge is to ensure that both
international and local energy companies
see this value proposition with South Africa
and choose our country. In this low oil and
gas price environment, companies are
inclined to cut back on capital investments
and we need to partner with them to sustain
the momentum.
Upstream oil and gas industry is highly
capital intensive, high risk in the early
stages and requires highly specialised
skills. So local small and medium
companies tend to find it difficult to source
funding for participating in the industry.
Our challenge is that as a regulator acting
on behalf of the government and the people
of South Africa, we have to find solutions
to these challenges so that South African
companies can meaningfully participate in
this strategic industry.
What do you predict the company’s biggest
success will be in the future?
A vibrant upstream oil and gas industry
that contributes to the security of
energy supply of the country
and the economy having a
substantially reduced
dependence on
imported gas.
Dr Phindile Masangane,
CEO of PASA
DR PHINDILE C MASANGANE
PHD CHEMISTRY, MBA, BSC.
(MATHEMATICS & CHEMISTRY)
Dr Masangane was appointed as the
CEO of the South African upstream
oil and gas regulatory authority,
Petroleum Agency South Africa, in
May 2020.
Before then, Dr Masangane was
an executive at the South African
state-owned energy company, CEF
(SOC) Ltd, which is the holding
company of PASA. Dr Masangane
was responsible for clean, renewable
and alternative energy projects. In
partnership with private companies,
she led the development of energy
projects including the deal structuring,
project economic modelling and
financing on behalf of the CEF Group
of Companies.
Her responsibilities also include
supporting the national government
in developing energy policy and
regulations for diversifying the
country’s energy mix.
In 2019, Dr Masangane was Head
of Strategy for the CEF Group of
Companies where she led the
development of the Group’s longterm
strategic plan, Vision 2040+
as well as the Group’s gas strategy.
From 2010 to 2013, Dr Masangane
was a partner and director at KPMG,
responsible for the Energy Advisory
Division. In this capacity, she successfully
led the capital raising of
$2-billion for the Zimbabwe power
utility, ZESA/ZPC’s hydro and coal
power plants expansion programmes.