Major gas find off southern coast of SA
French energy giant Total has found significant gas off Mossel Bay, a discovery expected to boost the nation’s struggling economy.
“Total has made a significant gas condensate discovery on the Brulpadda prospects . . . in the Outeniqua Basin, 175km off the southern coast of South Africa,” Total said in a statement.
Total CEO Patrick Pouyanne said on Thursday that the potential quantities could be about one billion barrels of gas and condensate light oil.
“So it could be quite big, it is probably,” he said in Paris.
“Having said that, this region is quite difficult to operate, with huge waves, so the weather is not very easy,” Pouyanne said of the block with water depths ranging from 200m to 1,800m.
Mineral resources minister Gwede Mantashe welcomed the news of the discovery as potentially a major boost for the economy, which grew less than 1% in 2018.
“It is exciting for our country. We welcome it as we continue to seek investment to grow our economy,” he said.
The news came just hours before President Ramaphosa delivered his state of the nation address, his final one before crucial elections due in May.
Mining analyst Makwe Masilela said the discovery was positive for SA, which is desperately seeking foreign direct investment and to cut down on gas imports from Mozambique.
“Foreign direct investment is something we are seriously looking for as a country,” he said on the sidelines of a mining investment conference.
Total senior exploration vice-president Kevin McLachlan said: “With this discovery, Total has opened a new worldclass gas and oil play and is well positioned to test several follow-on prospects on the same block.”
Total holds a 45%stake in the block, alongside Qatari, Canadian and SA firms.