Eco (Atlantic) Oil and Gas Ltd. (ECAOF)

[pro_s2009]

https://www.thebharatexpressnews.com/plans-for-massive-gas-production-off-the-coast-of-south-africa/

Plans for massive gas production off the coast of South Africa

South Africa expects TotalEnergies SE to submit a production plan within weeks to leverage a productive offshore gas discovery that will be a key part of the growing investment in the sector.

Petroleum Agency South Africa is “very confident” that the French major will complete talks with state-owned PetroSA and complete the required production plan to keep the license, which would otherwise expire on Sept. 6, chief executive officer Phindile Masangane said in an interview . A spokeswoman for TotalEnergies declined to comment.

The most industrialized country in Africa has no commercial oil and gas production, making it dependent on imports of the fuel. The search for domestic resources has met unprecedented opposition in recent months from communities and activists who have successfully blocked the exploration activities of companies, including Shell Plc.

“As the Petroleum Agency, we recognize that South Africa’s upstream oil and gas industry has become contentious,” Masangane said. Steps are being taken to improve guidelines around local consultations, which have been criticized by groups in court, as the regulator aims to increase activity, she said.

Production of the newly discovered Block 11B/12B could breathe new life into PetroSA’s 45,000-barrel-a-day gas-to-liquids plant in Mossel Bay, which has run out of raw material. South Africa also plans to use the fuel to move away from coal, which is used to generate nearly all of the country’s electricity.

If TotalEnergies meets the requirements, obtains environmental permits and starts development — located in an area considered one of the most difficult ocean environments due to the Agulhas Current — production could begin as early as 2026, Masangane said.

South Africa has also turned its attention back to the Karoo, a gas-rich, semi-desert region of the country where dozens of wells were planned by Shell and other explorers nearly a decade ago before environmental problems and legal uncertainty curbed activity.

The environment minister last month issued regulations for public comment on hydraulic fracking, a drilling technique that has raised concerns about water use in the Karoo.

According to Masangane, the government will conduct seismic activity by the end of the year to determine which blocks should be licensed after the rules are finalized. Groundwater and geological studies are also being conducted in the areas rich in biodiversity, she said.

The next oil and gas well in South Africa is expected to start in September. Eco Atlantic Oil & Gas Ltd and its partners have hired an oil rig scheduled to arrive off the coast of South Africa and start exploration in Block 2B. Processes leading up to the activity have been closely monitored, according to Masangane. “We are satisfied and do not anticipate a legal battle.”