LETTER: Sasol ready to explore
THE article, “Fillip in search for offshore oil and gas” (October 16), refers. It claims that Sasol has “shelved spending plans” of its hydrocarbon offshore exploration in SA. This is factually incorrect. On the contrary, we are excited at the prospects SA’s nascent upstream oil and gas industry holds for SA. In support of realising the goals of the National Development Plan, we have actively participated in Operation Phakisa. We also engaged with industry players and the Department of Mineral Resources in various other forums.
As a proudly South African company, we have played a leading role in developing local resources to contribute to the energy mix and to the benefit of the local economy. Sasol has an exploration right (ER236) for hydrocarbon exploration in the Durban Basin of the KwaZulu-Natal coast.
We completed an initial regional seismic survey in April, and are processing the data. Once completed, we will analyse the data and determine if further data acquisition is required to define drilling prospects. The geological risk-reward profile and an economic assessment are important factors in the “drill-or-drop” decision. Sasol also recently signed a conditional 40% farm-down agreement with Eni to explore and develop this block, pending approval from the authorities.
Sasol was also awarded a technical co-operation permit (TCP) with PetroSA as operator for Block 3A/4A off SA’s west coast. Together with PetroSA, we have submitted an application to have this TCP converted to an exploration right.
Notwithstanding the widely reported status of the Mineral and Petroleum Resources Development Act draft amendment bill, we continue with our plans to explore for hydrocarbons offshore SA. However, given the risk profile and capital intensive nature of the offshore oil and gas industry, clearly defined legislative parameters and stability are key in stimulating activity.
We are playing an active role in working with government and industry players in shaping and growing an industry that holds great potential in defining SA’s energy future.
Alex Anderson
Head, Group Media Relations, Sasol