South African Business 2024

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.
TotalEnergies 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
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
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PHOTO: Anton Swanepoel