Mineral and Petroleum Assets Minister Gwede Mantashe says the invention of gasoline and condensate from two exploration wells within the South Outeniqua Basin are proof that South Africa’s underexplored deep waters have important potential for oil and gasoline.
The Minister was talking throughout Africa Oil Week held on the Cape City Worldwide Conference Centre.
“Previously two years, TotalEnergies, Shell and Galp have made eight discoveries throughout three blocks in Namibia’s Orange Basin, representing an estimated 3.5 billion barrels of doubtless recoverable oil.
“These discoveries have led to an enormous curiosity by main petroleum corporations since it’s believed that the Namibian discoveries could also be extending southwards into South Africa.
“The discoveries of gasoline and condensate from two exploration wells drilled in Block 11B/12B offshore within the South Outeniqua Basin have additionally confirmed that South Africa’s under-explored deep waters have important potential for oil and gasoline, and thereby signalling a have to speed up exploration efforts,” Mantashe mentioned.
Commenting on the withdrawal of worldwide vitality large, TotalEnergies, from offshore Block 11B/12B and 5/6/7, Mantashe insisted that improvement on the block nonetheless stays viable.
“[There] stays a great potential for different oil and gasoline gamers to companion with the remaining operator – MainStreet – and develop the block.
“Opposite to the view that means that TotalEnergies withdrawal from the block is tantamount to insecurity, it’s encouraging that the corporate is a significant shareholder in 3 blocks North of South Africa’s Orange Basin within the deep to ultra-deep waters, and a 100% shareholder of one other bigger block that’s 3 occasions the dimensions of the 11b/12b in Southern Outeniqua,” he mentioned.
In accordance with the Minister, a number of exploration initiatives within the South African Orange Basin are “gearing up for improvement”. These embrace:
· Preparation work for drilling exploration of the Deep-Water Orange Foundation (DWOB) block operated by TotalEnergies.
· Proposed drilling of an exploration nicely, with the choice to drill as much as 4 extra wells in Block 3B/4B.
· The Northern Cape Extremely-Deep-Water Block has began with environmental authorisation processes for drilling.
· The notable progress made on Block 5/6/7 with a possible to begin drilling exploration within the block in 2026 concentrating on massive oil and gasoline sources.
Mantashe mentioned the danger for these initiatives is litigation in opposition to exploration and manufacturing.
“This has already affected two main seismic surveys so far, together with Shell, which deserted their survey and went on to find oil and gasoline in Namibia, in addition to ENI, which after being taken to court docket 47 occasions, left and went to find oil in big portions in Côte d’Ivoire.
“The profitable 3D seismic knowledge acquisition in April this 12 months by Searcher on South Africa’s west coast has confirmed that exploration of petroleum sources will be achieved efficiently with none hurt to the surroundings,” he highlighted.
The Minister gave a nod to the approval, by the Competitors Fee, of presidency’s acquisition of the assorted property that comprise the SAPREF [a joint venture between Shell Refining SA and BP Southern Africa] refinery, which is situated in Durban.
“Authorities has, by way of the Central Power Fund (CEF), concluded a transaction on the sale of property on the SAPREF precinct. This acquisition has since been accredited by the Competitors Fee, thus reinforcing our efforts that search to ensure enough provide of petroleum merchandise within the interval the place a number of refineries have been shut down prematurely.
“Like Chevron and Petronas, Shell’s determination to divest from its downstream enterprise operations in South Africa gives a chance for an additional investor, or main oil firm, to take over the property because the downstream sector will stay enticing for the foreseeable future, given the rise of hybrid automobiles.
“We enchantment to the delegates at this convention and the funding neighborhood to proceed investing within the improvement of oil and gasoline to allow a affluent vitality outlook for Africa, and promote sustainable improvement,” Mantashe mentioned.
