Pe­tro SA signs R5bn de­al with Rus­si­ans

Knysna-Plett Herald - - Voorblad -

An agreement strongly re­po­si­ti­o­ning Pe­troSA to­wards gro­wth was this week sig­ned be­t­ween Pe­troSA and a Rus­si­an ge­o­lo­gi­cal ex­plo­ra­ti­on com­pa­ny, Ros­geo, and is ex­pected to bring oil and gas de­ve­lop­ment of a­bout $400-mil­li­on (R5.2-bil­li­on) to South A­fri­ca. The pro­jected ex­tracti­on of up to 4-mil­li­on cu­bic me­tres of gas dai­ly from blocks 9 and 11a off the Ca­pe South Co­ast will be­ne­fit the Pe­troSA’s gas-to-li­quids re­fi­ne­ry in Mos­sel Bay.

Pe­troSA, the coun­try’s na­ti­o­nal oil com­pa­ny, and Ros­geo, ge­o­lo­gi­cal ex­plo­ra­ti­on com­pa­ny of the Rus­si­an Fe­de­ra­ti­on, this week sig­ned an agreement that will see a­bout US$400-mil­li­on in­ves­ted in oil and gas de­ve­lop­ment. The agreement was sig­ned in the pre­sen­ce of mi­nis­ters of e­ner­gy at the n­inth an­nu­al Brics Sum­mit cur­rent­ly un­der way in Xiamen, Pe­op­les Re­pu­blic of C­hi­na.

“A find in block 9 and 11a would re­sult in much-de­si­red ex­plo­ra­ti­on acti­vi­ty of our on­sho­re and offs­ho­re oil and gas po­ten­ti­al. The coun­try and Pe­troSA will be­ne­fit gre­at­ly from the find. From the per­specti­ve of Pe­troSA it will re­sult in che­a­per feed in­to the Mos­sel Bay re­fi­ne­ry,” said Nhlanhla Gu­me­de, Pe­troSA’s in­te­rim chai­r­per­son.

Con­tro­ver­sy

Ac­cor­ding to Dai­ly Ma­ve­rick (www.dai­lyma­ve­rick.co.za) the de­al, se­ver­al y­e­ars in the ma­king, re­cent­ly s­par­ked con­tro­ver­sy w­hen claims of political medd­ling e­mer­ged through court pro­cee­dings. The si­te sta­tes, “Dai­ly Ma­ve­rick pre­vi­ous­ly re­por­ted on claims by two for­mer Pe­troSA bo­ard mem­bers that their re­mo­val from the bo­ard was al­le­ge­d­ly due to a tus­sle a­bout this lu­cra­ti­ve de­al. Wil­li­am S­teen­kamp and Owen To­bi­as broug­ht an ur­gent high court ap­pli­ca­ti­on last week in a bid to chal­len­ge their re­mo­val.”

Ex­plo­ra­ti­on

Within the fra­me­work of the agreement, Ros­geo is sup­po­sed to con­duct a con­si­de­ra­ble vo­lu­me of ge­o­lo­gi­cal ex­plo­ra­ti­on work. In par­ti­cu­lar, it is plan­ned to car­ry out mo­re than 4 000sq km of 3-D seis­mic o­pe­ra­ti­ons and o­ver 13 000km of gra­vi­ty-mag­ne­tic ex­plo­ra­ti­on works, as well as the dril­ling of ex­plo­ra­to­ry wells.

Ros­geo CEO Ro­man Pa­nov, Cen­tral E­ner­gy Fund chair Lu­vo Ma­ka­si and Gu­me­de sig­ned the agreement.

Pa­nov stres­sed that within the fra­me­work of the con­tract, Ros­geo will use ad­van­ced techno­lo­gies, in­clu­ding 3-D ex­plo­ra­to­ry works, and mo­dern seis­mic and dril­ling ves­sels.

Stra­te­gic se­arch for oil

“The sig­ned agreement is ai­med at de­ve­lo­ping bi­la­te­ral re­la­ti­ons and will streng­then Ros­geo’s pre­sen­ce in the A­fri­can mar­ket,” he said.

Ma­ka­si said the se­arch for oil and gas re­sour­ces in South A­fri­ca re­mains very stra­te­gic for the coun­try’s e­ner­gy se­cu­ri­ty and is ex­tre­me­ly im­por­tant to Pe­troSA’s con­ti­nu­ed and sus­tai­na­ble sur­vi­val.

“South A­fri­ca’s oil and gas po­ten­ti­al re­mains lar­ge­ly u­nex­plo­red. This ex­plo­ra­ti­on ef­fort pre­sents a sig­ni­fi­cant upsi­de to both the coun­try and Pe­troSA. The upsi­de for Pe­troSA is the pos­si­ble ex­pan­si­on of our de­ple­ting gas re­sour­ces. Dis­co­ve­ry of hyd­ro­car­bons on our sho­res has the po­ten­ti­al to bring sig­ni­fi­cant re­ve­nues to the coun­try and pro­ve the coun­try’s oil and gas pro­specti­vi­ty,” he ad­ded.

Gu­me­de said the agreement re­pre­sents a sig­ni­fi­cant de­ve­lop­ment to­wards buil­ding a new stra­te­gic thrust for the com­pa­ny. –

Graphic: Sup­p­lied

Ac­cor­ding to an agreement sig­ned with a Rus­si­an com­pa­ny for ge­o­lo­gi­cal ex­plo­ra­ti­on, Mos­sel Bay’s Pe­troSA plant will be­ne­fit from the pro­jected ex­tracti­on of up to 4-mil­li­on cu­bic me­tres of gas dai­ly from blocks 9 and 11a off the Ca­pe South Co­ast.

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