Total’s gas find can be ‘major boost’ for economy

Mineral Resources Minister Gwede Mantashe has welcomed French oil and gas company Total’s significant gas discovery in the Outeniqua Basin.

Total said yesterday it had made a gas condensate discovery on the Brulpadda (Bullfrog) prospects after drilling in deep sea waters, 175km off the southern coast of South Africa.

Located on Block 11B/12B in the Outeniqua Basin, the Brulpadda well encountered 57m of net gas condensate pay in Lower Cretaceous reservoirs.

Following this discovery and confirmation of its potential, the company has indicated it will follow up with 3D seismic tests, to be followed up by four exploration wells.

Mantashe, who visited Total’s deep sea stavenger rig operations on Saturday, said in a statement it was exciting for the country that this discovery has 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,” Mantashe said.

“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.”

The Mineral and Petroleum Resources Development Amendment Bill has been withdrawn from parliament to separate oil and gas from the mining legislation.

A draft Upstream Petroleum (Oil and Gas) Bill is in the process of being developed.

Government has said this Bill will provide certainty to the upstream petroleum industry and stimulate growth and development in this sector.

In respect of mining, the Mineral and Petroleum Resources Development Act, 2002, as amended, continues to apply.

Mantashe said his department was moving with speed to finalise this legislation, to ensure that it is presented as soon as parliament sits.

Kevin McLachlan, senior vice-president for exploration at Total, said the well was deepened to a final depth of 3 633m.

“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. – ANA