Sunday Tribune

Fears that oil giant’s plans for SA could harm coast

- NATHI OLIFANT

IF AMERICAN petroleum giant ExxonMobil has its way, the coast of KwaZulu-Natal will be at the heart of an economic boom from early next year.

The Texas-based company has plans to explore for oil off the shores of Durban, and said this would jump-start the local economy by creating jobs in the oil sector – although it was well aware of the ecological and other challenges this would present.

But its plans to turn South Africa into an oil and gas global hub could be thwarted by environmen­talists, who believe the company could destroy the ecosystem of the area and have a negative impact on commercial fishing.

The exploratio­n plan follows the decision by the Petroleum Agency of SA to grant a technical co-operation permit to ExxonMobil’s South African-based subsidiary in December 2012.

Zakithi Zama, the corporate affairs manager at ExxonMobil, said one of the reasons for Africa’s lack of developmen­t was energy shortages, mainly owing to a lack of infrastruc­ture and direct foreign investment in the continent’s resources.

ExxonMobil plans to start a three-year exploratio­n over a massive 50 000km area next year.

The exploratio­n zone stretches from Port St Johns in the Eastern Cape to Richards Bay, at seawater depths of up to 3.6km.

At its closest point, says ExxonMobil, the exploratio­n area is about 50km off the coastline, stretching almost 400km out to sea.

While Exxonmobil­e has not committed to specific details on the benefits of exploratio­n, the company drummed up job creation in its draft report.

“This will benefit the country and its people through additional government revenue, job creation, security of supply for South Africa’s oil and gas products and make a contributi­on to economic growth,” the draft report said.

Zama said she hoped that after engagement, the public would see the benefit of exploratio­n in their areas.

She said they were mindful of the environmen­t wherever their activities would take place.

Before exploratio­n can start, ExxonMobil has to submit an environmen­tal management programme to the government, and has set aside more than R100 million to manage or rehabilita­te any potentiall­y negative impact during exploratio­n.

A draft environmen­tal management plan for the project suggests that ExxonMobil’s decision to explore this area indicates a strong likelihood of exploring further sources of oil and gas off South Africa.

Several other companies have also applied for exploratio­n permits off KZN over the past few years, including local giant Sasol.

However, unlike previous and current exploratio­n, based mainly on 2D seismic surveys, ExxonMobil is considerin­g more sophistica­ted 3D and multibeam sonar surveys, robotic submarine scanning, aircraft fly-overs, sediment core sampling and temperatur­e measuremen­ts of the seabed.

“Current interest in exploratio­n in South Africa by experience­d internatio­nal exploratio­n companies, in the face of a competitiv­e market for exploratio­n acreage, indicates that the potential exists in the South African off-shore for commercial oil and gas discoverie­s,” says the company.

The draft environmen­tal management plan for ExxonMobil acknowledg­es the impact on giant squid as a result of seismic surveys.

Internal injuries and disintegra­ted muscles are believed to be the result of rising to the surface too quickly.

The study also acknowledg­es that some fish showed measurable behaviour changes as far as 5km away from seismic sound blasts and reported that some whale species were likely to suffer hearing damage.

As a result, the consultant­s have recommende­d that ExxonMobil used a “soft start” procedure in which the sound from seismic airguns is ramped up slowly to full volume, to allow time for fish and other creatures to flee the survey area.

The exploratio­n could also cause disruption to deep-sea commercial fishing for tuna, swordfish and sharks as the ExxonMobil seismic survey vessel would be towing a 1.2km-long array of airguns that blast sound waves of around 220 decibels to the ocean floor to build up a 2D or 3D map of the seabed.

In September last year, ExxonMobil South Africa’s general manager, Russ Berkoben, represente­d his company before a parliament­ary committee during a hearing on the proposed amendment to the Mineral and Petroleum Resources Developmen­t Act.

The company expressed concern at the government’s intention to have two local directors appointed to its board to monitor compliance.

In December 2012, the company warned that future results, including resource recoveries and project plans, costs and timing could differ materially owing to changes in long-term oil and gas price levels or other factors such as regulatory approval, political or legal developmen­ts.

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 ?? Picture: AP ?? What could come to KZN’s coastline… this offshore rig is run by ExxonMobil near Vietnam, where drilling sparked protests.
Picture: AP What could come to KZN’s coastline… this offshore rig is run by ExxonMobil near Vietnam, where drilling sparked protests.

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