• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 9 hours Oil prices going Up? NO!
  • 29 mins Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 21 mins Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 days Could Venezuela become a net oil importer?
  • 24 hours Oil prices going down
  • 1 day Could oil demand collapse rapidly? Yup, sure could.
  • 37 mins The Tony Seba report
  • 2 days Gazprom Exports to EU Hit Record
  • 2 days Oil Buyers Club
  • 7 mins Kenya Eyes 200+ Oil Wells
  • 5 hours Saudi Arabia turns to solar
  • 17 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 11 hours Are Electric Vehicles Really Better For The Environment?
  • 1 day Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 2 days EU Leaders Set To Prolong Russia Sanctions Again
Alt Text

Europe Is Awash With Oil Stored On Ships

Bullish sentiment in markets makes…

Alt Text

OPEC+ Proposes 1-Million-Bpd Production Increase

The joint ministerial monitoring committee…

Alt Text

OPEC Meeting Could End Without Decision

The current disunity in OPEC…

Jen Alic

Jen Alic

 

More Info

Trending Discussions

ExxonMobil Eyes South Africa's Untapped Frontier

ExxonMobil Eyes South Africa's Untapped Frontier

Battling declining production, US energy super giant ExxonMobil Corp. (NYSE:XOM) is taking on South Africa—a rising offshore venue--where it will acquire a 75% stake in the Tugela South Exploration Right.

ExxonMobil is acquiring the Tugela concession from London-based Impact Oil & Gas Ltd, and will control operations in the area. The Tugela concession covers 2.8 million deep-water acres (6,500 feet) off the country’s east coast. Additional exploration rights tied to the concession cover some 16 million offshore acres.

ExxonMobil will also have the exclusive rights to study another deep-water area, the 12.4 million-acre Durban Basin for one year, with the possibility to extend. 

It’s Exxon’s first foray into South Africa, where it will join the likes of Royal Dutch Shell Plc (NYSE:RDSA) and Anadarko Petroleum Corp. (NYSE:APC). Shell has some 24 million acres off the coast of western South Africa, and is currently collecting seismic data in the Orange Basin, with a drilling decision expected next year.

How attractive is South Africa? Well, for now it’s just a potentially untapped offshore venue, but it’s managed to lure significant interest.

Related Article: Why Canadian Crude is the Cheapest in the World

South Africa has proven reserves of around 15 million barrels, most of which is offshore in the Bredasdorp basin (south) and off the western coast near its border with Namibia. There isn’t much crude oil production to speak of, but South Africa produces around 180,000 barrels per day of non-conventional, synthetic liquids.

The country also has an estimated 485 trillion cubic feet of technically recoverable shale gas, primarily in the Karoo Basin, while conventional natural gas reserves are limited and declining.

In terms of refining, South Africa’s capacity is impressive, handling about 703,000 bbl/d—rivaled in Africa only by Egypt. A new refinery is also underway to handle heavy crudes.

The most attractive thing about South Africa is that it’s been under-explored—at least offshore—and under-developed in terms of onshore shale in the Karoo Basin, which most eyes are now hungrily watching. But it will take time, patience—and lots of money.

By. Jen Alic of Oilprice.com




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News