https://www.miningweekly.com
Africa|Petroleum
Africa|Petroleum
africa|petroleum

South African govt coffers could get over R8bn a year from TotalEnergies field – regulator

15th September 2022

By: Reuters

  

Font size: - +

TotalEnergies' 11B/12B offshore field could make a direct annual contribution of at least R8-billion to South African government finances, the country's petroleum regulator said on Thursday.

"That is not just the overall GDP contribution but is the direct fiscal contribution from the royalties as well as the primary taxes," Phindile Masangane, CE at the Petroleum Agency of South Africa, told delegates at an oil conference.

TotalEnergies lodged its production licence application for Block 11B/12B on Sept. 5 before a deadline expired which might have seen the oil major forfeit its right to develop two huge gas field discoveries - Brulpadda and Luiperd off South Africa's southern coast.

Development of the field will represent a major milestone in South Africa reducing its dependence on imported oil and refined petroleum products, although new gas and oil projects are being challenged in courts amid environment concerns.

Another PASA official, COO Bongani Sayidini, said that South Africa has an estimated 60 trillion cubic feet (TCF) of offshore gas prospects.

Phase one of TotalEnergies' deep-water field could cost up to an estimated 45 billion rand to develop with first gas seen in 2027, he said.

"Discovered volumes can sustain 560 million standard cubic feet per day," Sayidini said, enough to supply a gas-to-liquid refinery in Mossel Bay currently operating well below capacity due to feedstock shortages.

Excess gas could potentially supply converted Eskom power plants or even a new 3 000 MW power plant, he added.

TotalEnergies is the operator with joint venture partners in Block 11B/12B including QatarEnergy, Canadian Natural Resources and local consortium Main Street.

South Africa's coastline remains largely under-explored, although a new well is expected to be drilled in Block 2B on the West Coast next month, said Sayidini.

The Gazania-1 well is targeting two low-risk prospects by operator Eco Atlantic Oil & Gas and its joint venture partners Africa Energy, Panoro Energy and Crown Energy.

Edited by Reuters

Comments

Latest News

The integration of Alamos' Island Gold mine (pictured) and Argonaut's Magino mine will create synergies of $515-million.
Alamos buys rival Argonaut
27th March 2024 By: Mariaan Webb

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.111 0.143s - 89pq - 2rq
Subscribe Now