Within the last few months, there’s been both good and bad news for South Africa’s oil and gas industry.
I’ll start with some good news: Shell, the UK-based giant, is optimistic that the vast hydrocarbon reserves discovered offshore Namibia extend into South Africa’s offshore zone. The company is so optimistic, in fact, that it asked the government earlier this summer for permission to bid on exploration rights for the Northern Cape Ultra Deep (NCUD) block in the Orange Basin.
Within the last few months, there’s been both good and bad news for South Africa’s oil and gas industry.
TotalEnergies has decided to withdraw from two oil and gas blocks offshore South Africa, with its partner in one of the blocks QatarEnergy also announcing its exit from the development.
South Africa’s industrial gas users are planning to form a company that will ensure supply after the sole provider of the fuel said it will halt the flow in 2026.
Shell Plc plans to explore an offshore South African oil block located across the maritime border with Namibia, where a number of discoveries have been made.
TotalEnergies plans to exit its discoveries of gas-condensate off the tip of South Africa to prioritise exploration in other areas closer to Namibia, according to people familiar with the matter.
South Africa’s purchase of the nation’s largest refinery from Shell Plc and BP Plc for a symbolic rand (five US cents) will transfer the environmental liability of the site to the government, according to a local advocacy group.
‘We have spent the last few months working hard to demonstrate the Company’s ability to generate power from our natural gas at its Amersfoort project in Mpumalanga. We obtained respected, professional engineering and equipment suppliers to support this project and we are absolutely thrilled to have become the pioneers of onshore Gas To Power (GTP) from a local, conventional source, which represents another significant milestone for the Company, establishing it as a proven solution within the energy mix planned to alleviate South Africa’s energy crisis.’
Two environmentalist groups have challenged in court French oil major TotalEnergies’ plans to drill five wells offshore South Africa.
TotalEnergies acquired a 33% stake in an exploration block offshore South Africa earlier in March.
Despite the apparent risks, TotalEnergies and QatarEnergy are moving ahead with their exploration effort off the South-African coast.
A World Bank blog makes the case for green hydrogen becoming a major economic driver for the economy.