Blue Chip Issue 85

OIL AND GAS
BLUE
CHIP
n and right and environmental authorisation
in Mossel Bay to full production and
t jobs. applications when the exploration
n and right and environmental authorisation profitability, saving about 1 200 direct jobs.
ment right expires, or earlier. The agency
t jobs. applications when the exploration A complete shutdown and abandonment
ad to expects the licensee to use worldclass
technologies and standards to
ment right expires, or earlier. The agency of this refinery would not only lead to
ffects
ad to expects the licensee to use worldclass
technologies and standards would to reverberate throughout the town of
job losses at the refinery, but the effects
wn of minimise the effects of the gas and
ffects
egion, gas condensate production on the
wn of minimise the effects of the gas Mossel and Bay and the Southern Cape region,
ut R2- environment, while maximising the incountry
benefit or local content from
egion, gas condensate production on since the the refinery contributes about R2-
el Bay
ut R2- environment, while maximising the billion incountry
benefit or local content economy, from and 6% to the Southern Cape
a year, or 26% of the Mossel Bay
Cape this development to support South
el Bay
acity. Africa’s economic recovery.
Cape this development to support South economy when producing at full capacity.
Africa These discoveries could indeed support
acity. Africa’s economic recovery. The Petroleum Agency South Africa
gas both the country’s economic recovery and
Africa These discoveries could indeed support awaits the licensee of these gas
ction its transition to a clean energy future.
gas both the country’s economic recovery discoveries and submitting its production
ction its transition to a clean energy future.
ors
ors
OIL AND GAS
right and environmental authorisation
applications when the exploration
right expires, or earlier. The agency
expects the licensee to use worldclass
technologies and standards to
minimise the effects of the gas and
gas condensate production on the
environment, while maximising the incountry
benefit or local content from
this development to support South
Africa’s economic recovery.
These discoveries could indeed support
both the country’s economic recovery and
its transition to a clean energy future.
International investors
INTERNATIONAL BRANDS SHOWING AN INTEREST IN SOUTH AFRICAN OIL AND GAS
South Africa, of the heated debate about sources of energy
OIL AND GAS
supply. “We do need to OIL diversify AND GAS our energy mix.”
A binary choice is often presented between renewable
energy technologies and fossil fuels. A recent report published
by the International Energy Association (IEA) argues against
framing the debate in that way.
Both can and should be used, according to Africa Energy
Outlook 2022. A key factor in allowing Africa to continue to
industrialise will be an uptick in the discovery and use of gas.
If all the gas so far discovered in and off Africa was used, the
continent’s share of global emissions would rise by 0.5% to 3.5%.
“We should not be brought into a false narrative and a
false choice,” says Dr Masangane, in agreeing with the report’s
conclusions. “It can be both and that is what this report is
in Mossel Bay to
calling
full production
for.”
and right and environmental authorisation
profitability, saving about
Dr
1 200
Masangane
direct jobs. applications
points
when
out that
the exploration
Mossel Bay to full with production South and Africa’s excellent
A complete shutdown and abandonment right expires, or earlier. The agency
profitability, saving about 1 200 direct jobs.
of this refinery would solar not resources only lead to expects it makes the licensee sense to use localise worldclass
technologies and standards to
the solar value chain
A complete shutdown and abandonment
job losses at the refinery, but the effects
to boost manufacturing, of this refinery but would the not country only lead to
would reverberate throughout the town of minimise the effects of the gas and
should not ignore
job losses at the refinery, but the effects
Mossel Bay and the Southern what Cape it has. region, “At gas the condensate same time, production we on know the
would reverberate throughout the town that of the gas value
since the refinery contributes about R2- environment, while maximising the incountry
benefit in or local country, content from so let’s also capitalise
Mossel Bay and the Southern Cape region,
billion a year, or 26% chain of the is Mossel well Bay established
since the refinery contributes about R2-
economy, and 6% to the Southern Cape this development to support South
on that.”
billion a year, or 26% of the Mossel Bay
economy when producing at full capacity. Africa’s economic recovery.
economy, and 6% to the Southern Cape
The Petroleum Agency The South multiple Africa uses These discoveries of gas could indeed play support
economy when producing at full a capacity. major role in helping
awaits the licensee of these gas both the country’s economic recovery and
The Petroleum Agency South Africa
discoveries submitting South its production Africa its transition to a away clean energy from future. fossil fuels while at the
awaits the licensee of these gas
same time boosting discoveries economic submitting growth. its production “We need gas not
just in electricity and transport,” noted Dr Masangane, “but
International investors
importantly for South Africa, which is in desperate need
International investors
of an economic turnaround, is for us to use this gas for our
manufacturing industry.”
right and environmental authorisation
applications when the exploration
right expires, or earlier. The agency
expects the licensee to use worldclass
technologies and standards to
minimise the effects of the gas and
gas condensate production on the
environment, while maximising the incountry
benefit or local content from
this development to support South
Africa’s economic recovery.
These discoveries could indeed support
both the country’s economic recovery and
its transition to a clean energy future.
HOW GAS DISCOVERIES CAN BOOST SOUTH AFRICA’S ECONOMY
The gas discoveries that have been made off the coast of South Africa (near Mossel Bay), when linked with the massive finds off
the coast of Mozambique and the enormous potential that exists in fields off the Namibian coast, amount to what could become
a seachange in the regional economy. TotalEnergies and its partners have deployed the Deepsea Stavanger offshore drilling rig,
pictured passing Table Mountain on its way to work off the coast of Mossel Bay, and they have achieved significant successes. The
two fields where finds have been made are called Luiperd (where 2.1-trillion feet of contingent gas resources has been found,
enough to power a medium-sized city for five years) and Brulpadda (1.3 Tef), which are part of Block 11B/12B.
If this gas were to be piped to the existing gas-to-liquid plant at Mossel Bay, Mossgas, then instead of spending about
R12-billion on decommissioning the plant, the facility could instead start generating R22-billion in taxes and royalties and
save South African taxpayers R26.5-billion through not having to import oil and refined products.
PASA estimates that the gas found in these blocks could produce 560-million cubic feet per day of gas for more than 15
years. TotalEnergies’ expenditure on stream phase one could amount to $3-billion in 2027 and create 1 500 direct jobs, 5 000
indirect jobs and increase the country’s gross domestic production by R22-billion.
The plan is to run the gas via a pipeline to a new fixed steel platform, and from there to use the existing pipeline to get
the gas to Mossgas. Up to 18 000 barrels per day of condensate and 210-million cubic feet per day (MMcfd) are expected to
be pumped to the facility. Gas condensate is a hydrocarbon liquid stream separated from natural gas and is used for making
petrol, diesel and heating oil.
Credit: Anton Swanepoel
petroleumagencysa.com Petroleum Agency SA @sa_petroleum Petroleum Agency of South Africa @petroleumagency