Major oil and gas find in South Africa
Significant discovery of condensate in the Brulpadda prospect off the coast of South Africa
A major boost for the South African economy
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Total has found “world class” oil and gas off the coast of South Africa. The French energy giant announced last week, following a significant discovery of condensate. It is expected to explore further in the waters of South Africa.
Total announced that its Brulpadda prospect had encountered a “significant” find in deep waters, with further 3D seismic testing planned for later this year. The prospect is located 175km off the country’s southern coast. The Financial Times quoted Wood Mackenzie consultancy as saying that the prospect could hold up to 1bn barrels of oil equivalent. “With this discovery, Total has opened a new world-class gas and oil play and is well positioned to test several follow-on prospects on the same block,” said Kevin McLachlan, senior vice-president exploration at Total. Total is developing the area with partners Qatar Petroleum and South African investors.
The find is a major boost for the South African economy, which is heavily reliant on energy imports for its domestic needs. President Cyril Ramaphosa’s government, in its bid to attract foreign investments, including in the oil and gas sector, has been trying to bring in legislature for ease in doing business in South Africa’s energy sector. Gwede Mantashe, the South African mineral resources minister has hailed the find as a “game changer” for the country.
According to South Africa’s The Cape Business the discovery will support the launch of a new hydro-carbons province in the country, which could attest to the equivalent of billions of barrels of oil in South Africa’s oceans. The discovery will support the launch of a new hydro-carbons province in the country, which could attest to the equivalent of billions of barrels of oil in South Africa’s oceans and consequently translate into benefits for South African workers and contractors across the value chain, creating employment opportunities for people far and wide. Additionally, it increases the South African government’s engagement with the African and global oil industry alike. Africa is set to become a leading gas market and has the potential to become a significant market for the development of liquefied natural gas (LNG) with many African countries exploring the natural gas potential. There have been rapid developments in West Africa’s gas sector as seen from Senegal to Angola. Although significant gas discoveries in Mozambique, Kenya and Tanzania have caused a concurrent surge of gas in the regions, foreign and, or private investment is necessary if developments and infrastructure associated with these discoveries are to be realised. Africa’s Shale Gas exploration has been triggered by the emergence of Shale Gas and the commissioning of the Strategic Environmental Assessment of Shale Gas by the South African Government. At the end of 2016, Africa was reported to have had proven natural gas reserves of 503.3 Tcf (trillion cubic feet), indicating an increase of around 1% in total gas reserves on the continent.
