Oil and gas sector a bright light in dark economy

Total’s oil and gas rig has arrived in Cape Town in preparation to expand on the petroleum giant’s significant discovery off the coast of Mossel Bay. The rig, known as the DeepSea Stavanger, was built in Norway and commissioned by Total and its partners to drill the Luiperd prospect in the same block in the Outeniqua basin where Total’s Brulpadda discovery was made. Mineral Resources and Energy Minister Gwede Mantashe has welcomed the arrival of DeepSea Stavanger, saying in a statement that it has reaffirmed South Africa as an investment destination of choice for the exploration of oil and gas, despite the negative impact of the Covid-19 pandemic on economies around the world. This as oil and gas companies are slashing spending as they reel from the effects of low prices amid the Covid-19 pandemic. But can promising projects in SA and Mozambique make the cut long term? The South African government published its long-anticipated draft oil and gas legislation on Christmas Eve, which feels like a lifetime ago thanks to Covid. It is hoped it will usher in a new era of exploration and production. To combat the country’s energy deficit, it must pave the way for the rapid development of substantial recent discoveries, including Total’s huge Brulpadda field last February, and prospects.
The attractiveness of South Africa’s terms will have ramifications far beyond its borders. Michael Avery discusses a game changing development for the oil and gas sector in South Africa with Stefano Marani, CEO Renergen, the only onshore Production Right holder;Lizel Oberholzer, director at Norton Rose Fulbright, who has been a leader in advancing the gas legislation in SA; Nick Mitchell, Chairman of the Onshore Petroleum Association of South Africa; & Marek Ranoszek, Asset Manager at Total E&P South Africa