• 5 minutes Global Economy-Bad Days Are coming
  • 8 minutes IT IS FINISHED. OPEC Victorious
  • 14 minutes Venezuela continues to sink in misery
  • 17 minutes Could Tesla Buy GM?
  • 9 hours Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 38 mins OPEC Cuts Deep to Save Cartel
  • 7 hours What will the future hold for nations dependent on high oil prices.
  • 15 mins Price Decline in Chinese Solar Panels
  • 2 hours And the War on LNG is Now On
  • 2 hours Alberta Cuts Push Prices Too High
  • 22 hours Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 23 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 19 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 1 day Permian Suicide
  • 2 days Asian stocks down
  • 2 days GOODBYE FOREIGN OIL DEPENDENCE!!
Alt Text

The Dangers Of China’s Growing Oil Demand

China’s November oil imports hit…

Alt Text

Is The Saudi-Russia Oil Bromance At Risk?

Russia and Saudi Arabia are…

Alt Text

Libyan Oil Production Falls 300,000 Bpd In December

Libya’s crude oil production has…

Jen Alic

Jen Alic

 

More Info

Trending Discussions

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