Mantashe hails gas discovery
MINERAL resources minister Gwede Mantashe has hailed the announcement by French oil and gas company Total of a significant gas discovery in the Outeniqua Basin, off the coast of South Africa.
Total said it made a gas condensate discovery on the Brulpadda prospects after drilling in deep sea waters, 175km off the southern coast.
Located on Block 11B/12B in the Outeniqua Basin, Total said the Brulpadda well encountered 57m of net gas condensate pay in Lower Cretaceous reservoirs.
Following this discovery and confirmation of its potential, the company said it would follow up with 3D seismic tests to be followed up by four exploration wells.
Mantashe, who visited the Total’s deepsea stavenger rig operations on Saturday, said it was exciting for the country that the discovery had been made.
“It is potentially a major boost for the economy and we welcome it as we continue to seek investment to grow our economy.
“It further confirms that our decision to separate legislation for oil and gas from traditional minerals, so that we can support this sector in realising its full potential, is the correct one,” Mantashe said.
The Mineral and Petroleum Resources Development Amendment Bill has been withdrawn from Parliament to separate oil and gas from the mining legislation and a draft Upstream Petroleum (Oil and Gas) Bill is being developed.
The government said the bill would provide certainty to the upstream petroleum industry and stimulate growth and development in the sector. In respect of mining, the Mineral and Petroleum Resources Development Act, 2002 as amended continues to apply.
Mantashe said the department was moving with speed to finalise the legislation, to ensure it was presented as soon as the 6th Parliament sits.
Kevin McLachlan, senior vicepresident for exploration at Total, said the well was deepened to a final depth of 3 633m and was successful in the Brulpadda-deep prospect.
“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,” McLachlan said.