South African shale activity grows
Activity in the Karoo Basin of South Africa continues to generate excitement for shale gas development with the awarding of additional Technical Cooperation Permits.
South African Petrochemicals group Sasol has announced its successful award of a joint application with Statoil ASA and Chesapeake Energy Corp.
The partners have received a Technical Cooperation Permit (TCP) in the Karoo Basin covering an area of approximately 88,000 sq km (approximately 21.7 million acres).
Primarily located in the Free State and also covering areas in the Eastern Cape and KwaZulu-Natal, the permit awards the applicants the exclusive right to study the prospectively for shale gas in the Karoo Basin for a period of up to 12 months, but does not include any surface activity or drilling.
The Sasol/Statoil/Chesapeake permit is the fourth awarding in the past nine months.
Falcon Oil & Gas Ltd. was the first off the mark, announcing in October 2009 that it had secured a TCP to evaluate 30,000 km2; (approx. 7.5 million acres) in the Karoo Basin.
At that time, Falcon disclosed that nine wells have been drilled in the area in the late 60′s and early 70’s and all had encountered gas shows.
Royal Dutch Shell followed by securing a TCP approximating 100,000 km2. Anglo American has also received a TCP.
‘A discovery of large recoverable shale gas reserves in the Karoo Basin will be a game changer in the broader South African energy market context and will likely constitute a major step to further develop gas transmission and distribution infrastructure in the country’, said Ebbie Haan, Managing Director of Sasol Petroleum International.
Large gas discoveries in the Karoo Basin could also help alleviate South Africa’s power and fuels shortage and assist in creating employment and wealth for the country.
In addition, the increase of natural gas in South Africa’s energy portfolio will significantly aid in the reduction of greenhouse gas emissions on a per unit basis compared to more conventional resources such as coal, from which South Africa generates the overwhelming majority of it’s electricity.
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