Thanks for the update on the Southern parts of Africa. As you say, it seems like it was a pricing issue that made Totalenergies with partners to withdraw from Block 11B/12B. It came up during a parliament committee hearing a few days ago with the petroleum minister of SA. With only Africa Energy Corp remaining, and officials at the DMRE stating they are confident new investors will jump aboard, which majors seem most like as a candidate for Block 11B/12B. Chinese national oil company or any other BRICS member capable of harsh deep water drilling? Africa Energy Corp has recently announced a approved later deadline for the EIA report (May 2025). So no PR-approval by the government before the EIA is approved.
Thanks for the update. A potential deepwater project in such deep water & strong currents will absorb an enormous amount of capital, time and effort for whichever company ends up trying to develop this area. Meantime the leaving companies will simply turn their attention to "lower hanging fruit" elsewhere. Any BRICS company/NOC will find this a challenge - and they too have to make money somehow. Seem a shame it has come to this. A lose-lose. South Africa is a wonderful country and its citizens deserve the benefits of securing a steady indigenous energy supply to overcome their recent woes...... and the benefits that can be bought to the economy from exploiting major resources.
I think the big problem is that PetroSA contracted Gazprom to supply gas to the refinery (they did not say where this gas will come from). The contract for revitalizing the refinery went to some other one man band company!!! That deal is already dead because the guy from that company lost a court case against a soccer player. He bought a soccer club and did not paid the players and he got sued, he is now declared bankrupt. I think the cheapest option was to connect the gas fields with the existing pipeline and let PetroSA buy the gas. However if you look at the level of corruption, then it is understandable why they walked away. Don't be surprised if Gazprom becomes a new partner in this deal.
Regarding Mopane 10 billion BOE being oil in place or reserves i would rely on the statement from galp themselves which say its OOIP. Its both oil and gas so the oil figure is probably a bit below 10 billion. From Galp: "hydrocarbon in-place estimates are 10 billion barrels of oil equivalent, or higher."
Thanks for clearing that up. Two wells and a successful test are much better at calibrating a find of this enormous magnitude than an exploration well's 8 and a half inch diameter hole and electric logs. I still don't believe you proven up 10 billion boeip (barrels of oil equivalent in place) with just two wells. No denying it's a great start and hyping the volumes does no harm when farming out half you equity and operatorship. The price tag will be eye-watering.
Tethys got a buyout bid from ROC, daughter of Hainan mining today. Several of us thought they wanted to be operators on their new blocks in Oman, but the management wanted to sell instead.
Ruling party SWAPO is facing a difficult election end November. I suspect everyone is putting off any major decisions until after that. I'm a Namibian reporter, btw.
It is amazing how often Exploration do not understand the difference between Reserves & Resources. Plus In-Place and Recoverable. Typically ~30% is the Recovery Factor being used so big difference between subsurface and surface volumes.
Thanks for the update on the Southern parts of Africa. As you say, it seems like it was a pricing issue that made Totalenergies with partners to withdraw from Block 11B/12B. It came up during a parliament committee hearing a few days ago with the petroleum minister of SA. With only Africa Energy Corp remaining, and officials at the DMRE stating they are confident new investors will jump aboard, which majors seem most like as a candidate for Block 11B/12B. Chinese national oil company or any other BRICS member capable of harsh deep water drilling? Africa Energy Corp has recently announced a approved later deadline for the EIA report (May 2025). So no PR-approval by the government before the EIA is approved.
Thanks for the update. A potential deepwater project in such deep water & strong currents will absorb an enormous amount of capital, time and effort for whichever company ends up trying to develop this area. Meantime the leaving companies will simply turn their attention to "lower hanging fruit" elsewhere. Any BRICS company/NOC will find this a challenge - and they too have to make money somehow.
Seem a shame it has come to this. A lose-lose. South Africa is a wonderful country and its citizens deserve the benefits of securing a steady indigenous energy supply to overcome their recent woes...... and the benefits that can be bought to the economy from exploiting major resources.
I think the big problem is that PetroSA contracted Gazprom to supply gas to the refinery (they did not say where this gas will come from). The contract for revitalizing the refinery went to some other one man band company!!! That deal is already dead because the guy from that company lost a court case against a soccer player. He bought a soccer club and did not paid the players and he got sued, he is now declared bankrupt.
I think the cheapest option was to connect the gas fields with the existing pipeline and let PetroSA buy the gas. However if you look at the level of corruption, then it is understandable why they walked away.
Don't be surprised if Gazprom becomes a new partner in this deal.
Packed with detail ✓
Thanks Mike. Please forward to your colleagues and consider giving us a thumbs up to help ur channel grow.
Regarding Mopane 10 billion BOE being oil in place or reserves i would rely on the statement from galp themselves which say its OOIP. Its both oil and gas so the oil figure is probably a bit below 10 billion. From Galp: "hydrocarbon in-place estimates are 10 billion barrels of oil equivalent, or higher."
Thanks for clearing that up. Two wells and a successful test are much better at calibrating a find of this enormous magnitude than an exploration well's 8 and a half inch diameter hole and electric logs. I still don't believe you proven up 10 billion boeip (barrels of oil equivalent in place) with just two wells. No denying it's a great start and hyping the volumes does no harm when farming out half you equity and operatorship. The price tag will be eye-watering.
Tethys got a buyout bid from ROC, daughter of Hainan mining today.
Several of us thought they wanted to be operators on their new blocks in Oman, but the management wanted to sell instead.
Any Southern Africa connection? I know ROC but can't think of Tethys
Ruling party SWAPO is facing a difficult election end November. I suspect everyone is putting off any major decisions until after that. I'm a Namibian reporter, btw.
I'd say "Difficult" is overstating it
Politics! It can change the world - for good or bad. I hope for the former!
It is amazing how often Exploration do not understand the difference between Reserves & Resources. Plus In-Place and Recoverable. Typically ~30% is the Recovery Factor being used so big difference between subsurface and surface volumes.
Thanks Adrian - and yet we have done videos expoing the difference! Hey ho!
Don't remember any confusion when I was in the industry 😅