10 months ago

African Business 2022 Q1

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  • Africa
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  • Geoscience
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  • Climate
  • Hydrogen
  • Exploration
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A unique guide to business and investment in Africa. The third issue of African Business marks a departure for this respected guide to business and investment on the continent. The first two journals were published in 2020 and 2021 but as of 2022, African Business is a quarterly journal. Every edition will carry editorial copy that will cover the following general topics, with a wide range of subjects within the broader economic sector: energy; mining and exploration; trade; finance; technology and tourism. In addition to this, special features on topical matters will be published periodically, along with country profiles.


AS AFRICA LOOKS TO A LOWER-CARBON FUTURE, SOUTH AFRICA INVESTS IN GAS EXPLORATION AS A STEPPING STONE TToday the biggest threat to humanity is climate change and Gas can drive economic growth and play a role in the transition to a clean energy future, argues Petroleum Agency South Africa CEO, Dr Phindile Masangane. The continental shelf of the Republic of South Africa covers some 200 000km 2 and the country has a coastline approximately 3 000km in length. the biggest threat to South Africa’s social stability is the high unemployment rate, which has primarily been caused by economic stagnation. As the global economy recovers from the devastating effects of Covid-19, demand for oil and gas has gone up significantly. If there was ever a need for proof that oil and gas still drive the global economy, recent statistics demonstrate the trend. The world’s developed economies industrialised on the back of oil and gas production and use. Now, just as Africa is on the cusp of being a significant gas producer and is making plans to use such gas for power generation, industrialisation and economic growth, the negative effect of greenhouse gas emissions on the environment has become undeniable. The urgency for action to mitigate the risk of climate change is no longer debatable. Between 1990 and 2018 the top five emitters have produced more than 50% of greenhouse gas emissions. During the same period South Africa has contributed 1% to global emissions. This is by no measure insignificant, and as a responsible global citizen South Africa must take steps to reduce its carbon footprint. The UN Framework Convention on Climate Change was established in 1992 to coordinate the global response to mitigate the threat of climate change, and specifically to get countries to commit to policies and plans that will ensure that the average global temperature rise is kept less than 1.5°C above pre-industrial levels. The International Energy Agency (IEA) proposes that to achieve this goal the world’s energy sector must reach net zero emissions by 2050. In its global energy net zero 2050 pathway, the IEA acknowledges that there is no single pathway to this goal, as developed and developing countries face different socioeconomic challenges and have contributed disproportionately to greenhouse gas emissions to date. COUNTRY-SPECIFIC PATHWAYS What a number of environmental interest groups seem to be ignoring in the IEA “Net Zero by 2050” report is the acknowledgment that there will be a differentiated approach to a clean energy future, taking into consideration the cost of the new clean energy technologies and the economic consequences of transitioning for each country. The IEA emphasises that each country must develop its own pathway to a net zero emission future. South Africa’s economy has been predominantly powered by coal, which is also a significant contributor to the country’s economy in terms of GDP as well as employment. Of all primary energy resources coal is the most carbon-intensive, and South Africa therefore has a relatively high carbon-intensive economy, contributing about 1% of annual global greenhouse gas emissions. In addition to coal, South Africa imports oil, gas and petroleum products for its energy needs as the upstream petroleum industry is still at a nascent stage. The two recent world-class gas discoveries in the Outeniqua basin off the south coast of the country are the biggest petroleum discoveries made in South Africa. The development of these discoveries has the potential to replace more than 2 300MW of diesel-fired electricity generation in Gourikwa, Dedisa and Ankerlig, thereby reducing the carbon emissions from these plants by more than 50% while eliminating sulphur oxide and nitrogen oxide emissions, which are also harmful to the 14 Dr Phindile Masangane, CEO, Petroleum Agency South Africa

500 500 2000 20km E-BF N OIL AND GAS environment. Gas is therefore an obvious bridge to a lower-carbon future in South Africa. Importantly, these gas discoveries could restore the gas-to-liquid refinery in Mossel Bay to full production and profitability, saving about 1 200 direct jobs. A complete shutdown and abandonment of this refinery would not only lead to job losses at the refinery, but the effects would reverberate throughout the town of Mossel Bay and the Southern Cape region, since the refinery contributes about R2-billion a year, or 26% of the Mossel Bay economy, and 6% to the Southern Cape economy when producing at full capacity. The Petroleum Agency South Africa awaits the licensee of these gas discoveries submitting its production right and environmental authorisation applications when the exploration right expires, or earlier. The agency expects the licensee to use worldclass technologies and standards to minimise the effects of the gas and gas condensate production on the environment, while maximising the in-country benefit or local content from this development to support South Africa’s economic recovery. These discoveries could indeed support both the country’s economic recovery and its transition to a clean energy future. The International Energy Agency has acknowledged that there will be different paths to clean energy. DATABASE MANAGEMENT The continental shelf of the Republic of South Africa covers 200 000km 2 and the country has a coastline approximately 3 000km in length. Petroleum Agency SA is responsible for the archive and management of the national hydrocarbon exploration database on behalf of the state. It has digitised, indexed and archived all of the data and reports resulting from the drilling of more than 300 offshore and some 200 onshore boreholes. The exploration database also include seismic field and processed data for more than 300 000km of 2D and 40 000km 2 of 3D seismic data that was acquired offshore and some 9 800km of seismic processed data that was acquired during the late 1960s in the Karoo, Algoa and Zululand onshore basins. Being the custodian of the National Petroleum Exploration and Production Database of South Africa, the Agency relies on a sustainable and effective Information Management Infrastructure in order to comply with its mandate to: - Archive and maintain a database on petroleum exploration and production data. - Provide access to existing data, cores, well samples, information and literature on request. - Add value and incorporate new as well as interpreted data into the database. - Maintain records of all hydrocarbon exploration and production activities. CONTACT DETAILS Tel: +27 21 938 3500. Email: Website: 13° 17° 27° 23° 25° 29° 15° 31° 33° 35° 11° 37° 19° 21° Pande gas field 23° 25° 27° 29° 31° 33° 35° 37° P E T R O L E U M E X P L O R AT I O N A N D P R O D U C T I O N A C T I V I T I E S I N S O U T H A F R I C A 0181/Hubmap1121.cdr 02/11/21 G T 3015B TCP ER PR Restriction Notice on Applications As of the 28th June 2018, all new applications for Technical Cooperation Permits, Exploration Rights and Production Rights will be by invitation until further notice. This affects: · All acreage, both onshore and offshore It does not affect: · Reconnaissance permits - i.e. spec surveys/multi-client surveys · Applications made before the 28th June 2018 · Current permit and right holders' exclusive rights to apply for exploration rights (from a TCP) or production rights (from an ER) Mineral and Petroleum Resources Development Act, No.28 of 2002. Role of Petroleum Agency SA Under section 71 of the above Act, Petroleum Agency SA has been appointed the designated Agency, with the following responsibilities: ! Promotion and regulation of exploration and production on and offshore ! Receive applications, evaluate and recommend the award of permits and rights ! Review, evaluate and recommend approval of EMPs ! Monitor compliance of licence conditions ! Maintain and add value to the national petroleum exploration and production database ! Acquire reconnaissance data ! Collect all prescribed fees Permits and rights The above Act defines the following permits and rights: ! Reconnaissance Permit - 12 months, non-exclusive ! Technical Cooperation Permit - 12 months, exclusive desk-top study, exclusive right to apply for Exploration Right ! Exploration Right - exclusive, transferable, 3 years, renewable for a maximum of 3 periods of 2 years each. ! Production Right - exclusive, transferable, 30 years, renewable. KUDU GAS FIELD BW Kudu (56%) Namcor (44%) Discovered in 1974 by a Chevron / Regent /Soekor consortium. The reservoir comprises Barremian (Early Cretaceous) aeolian sandstones with average porosities up to 22 % at 4400m. Atlantic Ocean ONSHORE / OFFSHORE KEY PETROLEUM EXPLORATION WELL OIL SHOWS COAL FIRED POWER STATION GAS TURBINE POWER STATION POSSIBLE FUTURE GAS PIPELINE SEISMIC LINES KOEBERG NUCLEAR POWER PLANT COAL FIELD ONSHORE OPEN ACREAGE OFFSHORE OPEN ACREAGE AREAS UNDER APPLICATION AREAS AWAITING RIGHTS CONVERSION TECHNICAL COOPERATION PERMIT EXPLORATION RIGHT PRODUCTION RIGHT MINING LEASE (OIL) - Block 9 MINING LEASE (GAS) - Block 9 TOSACO THOMBO / MAIN STREET PANORO / AZINAM Preparing to drill the Gazania Prospect SUNBIRD (Operator) (76%) PETROSA (24%) 003PR PETROSA (100%) 248ER SHELL (90%) OK ENERGY (10%)274ER274ER 248ER 105ER IBHUBESI GAS FIELD Ibhubesi gas field comprises fluvial type channels and lobes of Albian to early Cretaceous age. Currently, this production right is under a Gas Market Development Plan with an Integrated Field Development Plan (IFP) ongoing. SUNGU-SUNGU Petroleum (100%) 5000 5000 ODP 1085 3014 Kudu gas field Prospects/leads mapped in the drift sequence 223ER 223ER Reprocessed 2D seismic data. Currently evaluating prospectivity in the drift sequence 362ER 2914D 1000 1000 3414 Proposed pipeline 2915C 200 200 2915B 2915D Sungu Sungu 3015B 2816C 2916A 2916C 3016A Ibhubesi 3015D gas field 3016C 3000 3000 Total (77.78% Impact Africa (22.22%) 3315 3314 335ER 4000 Median line 3415 DSDP 361 3515 2916B 2916D ODP ODP Sungu 339ER 3114 1087 1086 Sungu Ricocure (60%) Total (80%) Azinam (20%) Sezigyn (20%) Africa Oil (20%) Sezigyn 343ER 339ER 340ER 3214 3215 Total (80%) Sezigyn (20%) 343ER Sungu Sungu Total (77.78% Impact Africa (22.22%) Total (Operator) (40%) Shell (40%) PetroSA (20%) Interpretation of the recently acquired 3D seismic data is ongoing. Several prospective areas have been identified in the drift sequences 224ER Sungu Sungu Ricocure (60%) Azinam (20%) Africa Oil (20%) 224ER 339ER 335ER Oranjemund Alexander Bay 339ER Sezigyn 3316 3416 Proposed pipeline Proposed pipeline 340ER Northern Cape Western Cape PetroSA 283ER PetroSA 283ER 3317A 3317C 3317B 3317D 3417B 3318C 3418A 3417 Total (40%) 3418C Shell (40%) PetroSA (20%) 224ER 3516 3517 3518 3615 3616 3617 Po sible gas pipeline 224ER NAMIBIA Saldanha Bay DSDP 360 E-CE GAS FIELD (PetroSA 100%) Originally the Sable oil field, gas is now being produced from this Aptian age deep marine channel sandstone reservoir to supplement the feed to the 3717 Mossel Bay plant. 3718 Karoo 3418D Steel mill Aranos Basin SFF Bulk oil storage 42 million bbl Possible gas pipeline 3419C 3519A 3519C 3618 3619 3719 3519B 3519D Kgalagadi Transfrontier Park Great Karoo Basin of Limit Chevron PetroSA synfuel refinery 100 000 bbl/d 36 000 bbl/d Cape Town (Crude equivalent) Mossel Bay 3422B 3418B ? 3422A Rhino Oil 354ER 354ER 208ER 3420C 3520A 3520C 3620C 219ER 3420D 3520B 3520D Silver Wave Energy 277ER 277ER 3620D 3621A 3621C ORIBI/ORYX OIL FIELD (PetroSA 100%) Submarine fan deposits of Albian (Early Cretaceous) age. Currently not in production. 3621B 3621D 3720 3721 3722 Karoo Basin Resource type: Shale gas Applicants: Shell, Falcon & Bundu Current status: Under application 219ER 3422D BOTSWANA 3423A 200 200 500 500 Total 3622231ER 3623 Total 231ER 1000 SOUTH AFRICA 163 ? Port Elizabeth 322ER 3423B 3424A 3424B 3425A Sungu Sungu Sungu Sungu Western Cape Eastern Cape 322ER 2000 2000 3000 4000 4000 3624 Kimberley Deep tight gas shale play? 220ER Dry gas in fractured carbonaceous Ecca Group shales (Fort Brown Formation) on the flank of a dolerite sill. Tested flow rate of 1.84 million scf/day at 2072 psi, (2563m to 2612) but showed depletion. 220ER PETROSA BLOCK 9 061ER Ongoing exploration and appraisal of oil and gas discoveries. 061ER Graaff-Reinet 208ER BOTSWANA COALBED METHANE (CBM) EXPLORATION Large Potential Resource 4000 4000 221ER Coega Industrial Development Zone 3625 3425B 3426A 3326D 3426B 3425D Impact 3426C Africa 3426D 252ER Impact Africa 252ER Possible Possible 3327C 3427A 3427 3525 3526 3527 069ER Molteno gas gas pipeline pipeline 3327B 3327D 3427B 3328A 3328C LESOTHO 3428 Two deep water, gas and condensate Apt-Albian discoveries, commercialisation is currently under discussion 067ER 3626 3627 3628 3000 3000 Morupule Mmamabula 3228D 3328B 3229A 3229C environmentally 25 km 3329 Impact Africa (90%) 3330 Silver Wave Energy (10%) 3429 sensitive 4000 3129D 3229B 3528 3529 3530 Tuli 3130C Impact Africa (90%) Silver Wave Energy (10%) 276ER 276ER 3430 Visit our website at Sapref 165 000 bbl/d bu coastal 3230 buffer ZIMBABWE 200 zone 3130B Engen 105 000 bbl/d 200 200 3431 500 500 1000 1000 3031C 3031A 3231 3331 2931C Kwa-Zulu Natal Eastern Cape N 2000 2000 3131 200km SWAZILAND 3031B 3031D 2931B 2931D Isobaths in metres 3332 3032A 3032C 2932A 2932C 3132 3232 2832C 3032B 3032D 2832B 2832D Coal export terminal 2932B 2932D 2732D 3233 3133 3033 2933 for more information This map does not constitute a final authority. Requests for further details should be addressed to the Chief Executive, Petroleum Agency SA. November 2021 3000 Kruger National Park MOZAMBIQUE 2833 2733 Gas pipeline - Exports about 350 million scf/day 13° 17° 27° 19° 21° 23° 25° 29° 15° 31° 11° 33° 35° 37° 39° CR1/68 202ER Gaborone Bloemfontein 351 Francistown Machadodorp Pretoria Highveld/Ermelo Resource type: CBM & Conv.Sandstone Operators: Kinetiko & Badimo Johannesburg Current status: Production feasibilty Evander Secunda studies including pilot production wells gas field 171TCP 192TCP 207TCP 272ER 193TCP Mbabane Anglo Operations Sasolburg Smaldeel Mining Right for Natref ‘gas’, producing helium 207TCP Sasol 271ER 271ER 206TCP 320ER 191TCP 288ER 271ER 318ER 294ER 270ER 294ER 270ER 361ER 09ER 32 29 315ER 341 346ER Newcastle 294ER 29 346ER G 350ER T 198TCP 07PR 202TCP Dannhauser 94 210-214 316ER 64ER 315ER 33 Free State gas field 346ER Wits Basin Ladysmith Resource type: Biogenic Gas Main Operator: Molopo E&P Current status: Production drilling and market finalisation 221ER Maseru East London 02ER TOTAL (45%) QATAR PETROLEUM (25%) CNR (20%) MAIN STREET (10%) 061ER PETROSA - BLOCK 11a Early Cretaceous shallow marine gas fields currently under appraisal. 061ER F-A GAS FIELD & SATELLITES (PetroSA 100%) Currently producing from Early Cretaceous shallow marine sandstone reservoirs. Separate 91km pipelines convey gas and condensate to the PetroSA GTL synfuels refinery at Mossel Bay where petrol, diesel, kerosene, etc are produced. F-O Field, 4 wells drilled and currently 2 producing. Waterberg Resource type: CBM (Coalbed Methane) Main Operator: Anglo American Ltd Current status: Feasibility studies for commercialisation of the resource 067ER 295ER 068ER 201TCP Soutpansberg Resource type: CBM Operators: Tshipisi, Umbono, Iningi Current status: Early exploration stages for CBM Polokwane Springbok Flats Resource type: CBM Operators: Umbono & Badimo Current status: Desktop evaluation studies Port Shepstone 346ER NEW AGE ALGOA (50%) RIFT Petroleum (50%) Durban 199TCP Ohrigstad 262ER 201ER 201ER Prospectivity evaluation of the synrift and post rift sequences ongoing Richards Bay Komatipoort IMPACT AFRICA 100% 252ER PANDE & TEMANE GAS FIELDS Combined reserves in excess of 5.5 Tcf. Now operated by Sasol/ENH partnership. 252ER Maputo Eskom - Majuba Underground Coal Gasification Project Trial production started Jan. 2007 Planned full production by 2013 is 313 million scf/day (natural gas equivalent) Median line 3034 2934 2734 2834 Indian Ocean ORIBI OIL FIELD PetroSA 100% 006PR 2000 2935 PetroSA EXPLORATION RIGHT (61ER) 2835 E-M 2735 3000 3000 Temane gas field 4000 4000 ORYX OIL FIELD PetroSA 100% 006PR 5000 3000 3000 4000 4000 PRODUCTION AND MINING RIGHTS IN BLOCK 9 E-CE GAS FIELD PetroSA 100% 004PR E-M and E-BF mining leases (PetroSA) 005PR SOUTH COAST GAS PetroSA 100% 002PR ONSHORE RIGHTS 12/2/171 TCP Tetra4 12/2/191 TCP Bastion 12/2/192 TCP Bastion 12/2/193 TCP Bastion 12/2/199 TCP BlackGold 12/2/201 TCP BlackGold 12/2/202 TCP Gondwana Petroleum 12/3/002 ER Anglo Operations 12/3/009 ER Organza Gas 12/3/029 ER Tetra4 12/3/032 ER Tetra4 12/3/033 ER Tetra4 12/3/064 ER Tetra4 12/3/094 ER Tetra4 12/3/210 ER Gold One Africa 12/3/211 ER Gold One Africa 12/3/212 ER Gold One Africa 12/3/213 ER Gold One Africa 12/3/214 ER Gold One Africa 12/3/270 ER Afro Energy 12/3/271 ER Afro Energy 12/3/272 ER Afro Energy 12/3/294 ER Rhino Oil 12/3/295 ER Rhino Oil & Gas 12/3/315 ER Motuoane Energy 12/3/318 ER Rhino Oil 12/4/007 PR Tetra4 SASOL (60%) ENI (40%) Purchased 2D multi-client seismic data. Interpretation of this data 236ER and legacy data ongoing. PetroSA PetroSA E-BK 011PR F-A 005PR F-A GAS FIELD PetroSA 100% 236ER ONSHORE APPLICATIONS 12/2/206 TCP Imbokodo E&P 12/2/207 TCP Imbokodo E&P 12/2/208 TCP Booi Brothers 12/3/068 ER Badimo Gas 12/3/069 ER Badimo Gas 12/3/202 ER Bundu Gas & Oil 12/3/208 ER Falcon Trading 12/3/219 ER Shell Explo. Co 12/3/220 ER Shell Explo. Co 12/3/221 ER Shell Explo. Co 12/3/262 ER Booi Brothers 12/3/288 ER Twala Mnyamande 12/3/316 ER Motuoane Energy 12/3/320 ER Afro Energy 12/3/341 ER Motuoane Energy 12/3/346 ER Rhino Oil 12/3/350 ER Rhino Oil 12/3/351 ER Gondwana Ener gy 008PR F-O 100m 500m 200m UNDER APPLICATION EXPLORATION RIGHT PRODUCTION RIGHT MINING LEASE (OIL) MINING LEASE (GAS) 23° 25° 27° 29° 31° 33° 35° 37° 15

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