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Western Cape Business 2021

  • Text
  • Tourism
  • Renewables
  • Energy
  • Transport
  • Business
  • Investment
  • Oil
  • Gas
  • Agriculture
  • Port
  • Overview
  • Economic
  • Manufacturing
  • Nedbank
  • Provincial
  • African
  • Banking
  • Sector
  • Western
  • Cape
The 2021 edition of Western Cape Business is the 14th issue of this highly successful publication that, since its launch in 2005, has established itself as the premier business and investment guide for the Western Cape. The Western Cape has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, a special feature on thriving agricultural exports gives insight into the details of what fruits and wines go where. An interview with the Port Manager of the Port of Cape Town provides more understanding of the scale of the logistics operation that is a major port. Another special feature examines the City of Cape Town as a national headquarters for the thriving asset management sector. The cover picture reflects an exciting new find of gas condensate off the south-eastern coast, a potential game-changer for the Western Cape and South African economies. This new development is covered in the overview of the oil and gas sector.

OVERVIEW FOCUS Gas find

OVERVIEW FOCUS Gas find sparks major investment in exploration in Western Cape Mossel Bay could receive condensate from offshore site. Amajor discovery has been made at a site south-east of Mossel Bay called Brulpadda. The well encountered 57m of net gas condensate pay in Lower Cretaceous reservoirs. Following the success of the main objective, the well was deepened to a final depth of 3 633 metres and has also been successful in the Brulpadda-deep prospect. This has exciting repercussions for the emerging Western Cape oil and gas sector. As Kevin McLachlan, the Senior Vice President Exploration at Total, said at the time of the find, “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.” Total as operator holds a 45% participating interest in Block 11B/12B, while Qatar Petroleum (25%) and CNRI (20%) are the other participants. Africa Energy holds a 4.9% effective interest in the Exploration Right for Block 11B/12B. The Company owns 49% of the shares in Main Street 1549 Proprietary Limited, which has a 10% participating interest in the block. If the local gas market is to take off and thrive, significant drilling has to take place. As the new CEO of Petroleum Agency SA, Dr Phindile Masangane, describes the situation, “That would be a game-changer for South Africa’s upstream oil and gas industry.” She added, “The recent discovery by Total and its JV partners in Block 11B/12B (Brulpadda) is the first giant step in that direction.” “Further development of the discovery is highly dependent on the success of this further drilling,” comments Dr Masangane. “Possible development could see condensate being piped to the PetroSA facility in Mossel Bay,” she adds, “but these decisions are ultimately up to the operator, Total and its partners.” Odfjell’s Deepsea Stavanger semi-submersible oil rig relocated from Norway to South Africa in June 2020 to start exploratory drilling. The Luiperdpadda prospect where the rig is drilling is the second of five prospects in the group. With light oil and gas condensate having been found in the Brulpadda well, it is possible that other prospects will be found with this further drilling. The exploration drilling in Block 11B/12B is in deep waters similar to where the gigantic Mozambique Rovuma Basin gas discoveries were made in 2010. The drilling campaign has long-term benefits to South Africa which include introducing frontier deep water (>1400m) exploration drilling, building confidence and potentially shifting petroleum exploration activities to private international oil companies (IOCs), de-risking deep-water acreage. This will encourage other IOCs to take risk in drilling deep-water prospects, which could result in the country discovering more oil and gas resources. WESTERN CAPE BUSINESS 2021 32

OVERVIEW FOCUS Petroleum Agency SA: promoting and regulating exploration and production. Petroleum Agency SA evaluates, promotes and regulates oil and gas exploration and production activities in South Africa and archives all relevant geotechnical data. The Agency acts as an advisor to the government and carries out special projects at the request of the Minister of Mineral Resources and Energy. South Africa’s energy mix is changing to include more gas through importing liquefied natural gas (LNG), using shale gas if reserves prove commercial, and developing infrastructure for the import of LNG. Petroleum Agency SA plays an important role in developing South Africa’s gas market by attracting qualified and competent companies to explore for gas. Another major focus is increasing the inclusion of historically disadvantaged South African-owned entities in the upstream industry. Currently, natural gas supplies just 3% of South Africa’s primary energy. A significant challenge facing the development of a major gas market is the dominance of coal. Opportunities for gas lie in the realisation of South Africa’s National Development Plan (NDP) and the Integrated Resource Plan (IRP). As custodian, Petroleum Agency SA ensures that companies applying for gas rights are vetted to make sure they are financially qualified and technically capable, as well having a good environmental track record. Oil and gas exploration requires enormous capital outlay and can represent a risk to workers, communities and the environment. Applicants are therefore required to prove their capabilities and safety record and must carry insurance for environmental rehabilitation. ■ Contact details Tel: +27 21 938 3500 Email: plu@petroleumagencysa.com Website: www.petroleumagency.com Image: Total PASA’S NEW CEO HAS A BACKGROUND IN ENERGY POLICY AND STRATEGY Dr Phindile Masangane was appointed as the CEO of the South African upstream oil and gas regulatory authority, Petroleum Agency South Africa, in May 2020. Before then, Dr Masangane was an executive at the South African state-owned energy company, CEF (SOC) Ltd, which is the holding company of PASA. Dr Masangane was responsible for clean, renewable and alternative energy projects. In partnership with private companies, she led the development of energy projects including the deal structuring, project economic modelling and financing on behalf of the CEF Group of Companies. Her responsibilities also included supporting the national government in developing energy policy and regulations for diversifying the country’s energy mix. 33 In 2019, Dr Masangane was Head of Strategy for the CEF Group of Companies where she led the development of the group’s long-term strategic plan, Vision 2040+ as well as the group’s gas strategy. From 2010 to 2013, Dr Masangane was a partner and director at KPMG, responsible for the Energy Advisory Division. She successfully led the capital raising of -billion for hydro and coal power plants expansion programmes of the Zimbabwean power utility, ZESA/ZPC. An alumnus of three universities, Dr Masangane has a BSc (mathematics and chemistry) from the University of Swaziland, a PhD in Chemistry from Imperial College, London and an MBA from the University of the Witwatersrand. ■

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