A huge oil and gas field, three times larger than past discoveries, has been discovered south of Africa

A first discovery in deep Africa in South Africa, backed by a consortium including Canadian Natural Resource Ltd., could spur its competitors to rush abroad as the country strives to reduce its reliance on imported fuels.

The discovery of Brulpadda, estimated at around 1 billion barrels by its operator Total ASA, could be enough to supply refineries in South Africa for almost four years. This is a boon to a country that has always run out of oil and lacks domestic gas.

Block 11B / 12B, with an area of ​​19 000 km 2, is operated by Total with a 45% direct interest. Qatar Petroleum owns 25%, Canadian Natural Resources International 20% and the remaining 10% is controlled by Main Street, a South African consortium.

"It's really a transformation," said Thursday Andrew Latham, vice president of global exploration at consultant Wood MacKenzie Ltd. "This could be a discovery that launches a gas strategy for South Africa."

The region is quite difficult to exploit. Huge waves, the weather is not very easy

A light liquid hydrocarbon deposit was discovered about 175 kilometers off the south coast of the Outeniqua Basin. The region in which Exxon Mobil Corp. and Eni SpA also hold interests could generate additional interest, especially since South Africa is expected to adopt new legislation later this year to stimulate exploration.

This discovery "could potentially significantly boost the economy," said Minerals Minister Gwede Mantashe. "We welcome it while continuing to seek investment."

"Catalytic research"

President Cyril Ramaphosa is seeking to attract $ 100 billion in investments by 2023 to revive a struggling economy. The country's energy supply is heavily reliant on coal, while the state-owned utility Eskom Holdings SOC Ltd. is the largest energy supplier in the country. also operates turbines running on diesel. An unsuccessful exploration campaign in shallow waters has resulted in a liquid gas refinery at Mossel Bay, well below capacity.

Total's discovery is a "catalytic discovery" for the country, "said Niall Kramer, chairman and chief executive officer of the South African Oil & Gas Alliance, industry lobby group. nothing that has been on this kind of scale. "

The resource could be about three times the size of all gas discoveries in South Africa to date, according to WoodMac, Latham. Total, the licensee, now plans to acquire 3D seismic data before drilling up to four other exploration wells. But he warns that the offshore environment is difficult.

"The region is pretty hard to exploit," said Patrick Pouyanne, CEO of Total, during a conference call. "The waves are huge, the weather is not very easy."

According to data by Baker Hughes, Africa as a whole has seen an increase in drilling, with oil and gas platforms around the continent reaching 100% in recent months. The number was as low as 77 in 2017.

With the help of François de Beaupuy and a staff file from the Financial Post

Bloomberg.com