Offshore Oil and Gas Exploration
Offshore Oil and Gas Exploration has indicated that South Africa’s coast and adjoining waters have possible resources of approximately nine billion barrels of oil. This is equivalent to 40 years of South African oil consumption.
We also have eleven billion barrels oil equivalent of natural gas, which is equal to three hundred and seventy five years of South African gas consumption. However, there is significant uncertainty about the extent of these resources. This work stream has developed eleven initiatives. The team has set an ambitious target of drilling 30 exploration wells in 10 years. Over the next 20 years, this work could lead to the production of three hundred thousand (370 000) barrels of oil and gas per day. This is approximately eighty % of current oil and gas imports. The result would be one hundred and thirty thousand jobs and a contribution of two point two billion US dollars (US $2.2 billion) to GDP.
The South African Government is aware that it has to create the enabling environment to give industry the comfort to invest in this capital-intensive sector. The work stream has outlined some initial targets towards this goal. Government has to:
Provide clarity and stability in the legislative framework governing offshore oil and gas, ensuring a “win-win” outcome for government, industry, and society.
Build a “one-stop shop” within the Department of Mineral Resources to streamline and regulate the licensing process for offshore oil and gas exploration and production.
Conduct emergency response drills also as industry to initiate the creation of a world-class oil spill response capacity in South Africa.
Make the International Oil Pollution and Compensation Fund operational.
Exploit research opportunities presented by offshore oil and gas explorations that will unlock data ecosystems, marine resources, and ocean related renewable energy.