1. REPUBLIC OF SOUTH AFRICA 3RD LICENCE ROUND 2007
Exploration opportunities
Mr President, Honourable Minister/Deputy Minister, ladies and gentlemen and fellow explorers.
My presentation is intended to provide background information in order to set the scene and to provide the foundation for a better understanding of South Africa’s 2007 Petroleum Licence Round.
This first slide is a view of Cape Town looking south across Table Mountain.
The top of Table Mountain is about 1000m above sea level and the erosion that is self-evident in this image has led to the accumulation of porous and permeable reservoir sandstones out to sea to the right where Area B, one of the 4 areas being offered, is situated.
Dave Broad
Petroleum Agency SA

2. Outline of presentation
South Africa’s 2007 Licence Round Why explore in South Africa? Role of Petroleum Agency Basins and data Exploration history Future expectations
My presentation will address these five key topics:
Why explore in South Africa? – why are you here today and why are you interested in exploring in South Africa?
The role of the Petroleum Agency
A word about basins and data
Some key points in the history of petroleum exploration in South Africa and
What does the future hold?

3. South Africa’s 2007 Licence Round

4. WHY EXPLORE IN SOUTH AFRICA ?
Large prospective basins relatively under-explored
Exploration risk reduced by 40 years of state-sponsored exploration
Sweet spots are known
Petroleum systems identified
National petroleum database is well organised
The Petroleum Agency will assist
Why explore in South Africa? 6 key reasons are given here:

5. Role of Petroleum Agency
The Mineral and Petroleum Resources Development Act formalises the role and responsibilities of the Agency
Archiving of data
National archive for upstream petroleum data
2. Promotion of exploration and development
Appraise potential
Promote exploration and development
Raise awareness of petroleum resources at national level
3. Regulatory functions
Receive applications for rights and permits
Appraise technical programmes
Approve environmental programmes
Manage contracts - compliance
The role and functions of the Petroleum Agency are defined by law in the Mineral and Petroleum Resources Development Act. You will hear more about this act in a later presentation.
There are essentially 3 main functions
1. Archiving of data –
over 40 years data is archived by the Petroleum Agency
2. Promotion of exploration and development –
This speaks for itself
3. Regulatory functions

6. South African basins prospective for oil and gas
Karoo Basin
Now a word about South African basins which are prospective for oil and gas.
Most of the land surface of South Africa is taken up by the Great Karoo Basin. In certain areas there is currently a significant amount of interest in Coal Bed Methane.
The Licence Round is focussed on the offshore Orange Basin which also extends into Southern Namibia, and the Outeniqua Basin. The Outeniqua Basin comprises the Bredasdorp, Pletmos, Gamtoos and Algoa basins.
Everyone of these basins has a unique geological history.
South Africa’s oil and gas production comes from the Bredasdorp Basin.

7. Exploration wells offshore South Africa
The first offshore well was drilled in Since then over 300 wells have been drilled, mainly in the Bredasdorp Basin.
Note the limited drilling – only 40 wells in the Orange Basin.

8. Seismic coverage offshore South Africa
This slide shows the total extent of seismic data offshore. Also shown is some academic data which is privately owned.
Note the concentration of the data in the Outeniqua Basin
Solid red indicates 3D seismic data
The red lines indicate a non-exclusive survey acquired by PGS in This data really helped to show the deep water potential of the Orange Basin

9. Data Information Standard data package contains:
seg-y, pdf, ascii format on dvd
representative seismic data
selected well data
selected reports
discounted price $12 500
All data: additional data may be purchased at standard rates eg.$10/km
Ask to see the Data Catalogues
DATA CATALOGUES AVAILABLE:
1. STANDARD DATA PACKAGE
2. ALL DATA

10. The sweet spots - after 40 years of exploration the petroleum systems are mostly understood
After 40 years of exploration and data, the sweet spots of petroleum systems are pretty well understood.
The most prospective areas for gas are on the shelf in the Orange and Outeniqua basins.
The most prospective area for oil are in the deeper water areas, and in the Algoa Basin.

11. Early exploration 1940s - 1964 onshore work by Geological Survey etc
SOEKOR formed: starts onshore exploration
In order to understand where we are today it is important to understand the elements in the history of exploration.
The first exploration was onshore – first by the Geological Survey, and later by SOEKOR which was formed in 1965.

12. First Licence Round
Entry of majors: BP, Shell, CFP, Mobil, Superior, Tenneco, Cities, Placid, Arco, Chevron, Conoco, Esso
First offshore well: Superior discovers gas in the Pletmos Basin
Kudu gas discovery offshore Namibia
SOEKOR is sole explorer
Discovery of F-A gas field, Bredasdorp Basin
Discovery well for Ibhubesi gas field, Orange Basin
Oil discovered in Bredasdorp Basin (Oryx, Sable, Oribi fields)
First gas production from F-A gas field - pipeline to GTL plant in Mossel Bay
Then in 1967 the Government made a decision to hold a Licence Round and this brought in some of the major oil companies of the day.
The first gas discovery was made in 1969
- the Ga-A gas field which has to this day not been developed due to tight reservoirs.
The followed the Kudu gas discovery in Namibia.
Then the dark days of apartheid descended on us and for political reasons all the foreign companies withdrew from South Africa and SOEKOR was the only explorer from 1976 – 1997
But SOEKOR made a whole string of discoveries as shown here
Etc

13. Second Licence Round
Phillips with PanCanadian, Sasol, Energy Africa explores East Coast
South Africa produces first oil – Oribi
Petroleum Agency formed
Ibhubesi gas field: Forest appraisal demonstrates highest commercial flow rates in South Africa
PetroSA formed

14. Canadian Natural Resources
Licences, operators and fields
Applications
for CBM
Forest
(with Anschutz, PetroSA)
Ibhubesi
gas field
BHP Billiton
(with Occidental & Global)
BHP Billiton
(with Sasol/PetroSA)
F-A/E-M gas fields
PetroSA
(with Pioneer)
Sable oil field
Canadian Natural Resources
Oribi/Oryx oil fields

15. 2006 - South Africa’s oil and gas production PetroSA/Pioneer
F-A/E-M gas field
160 MMscf/d
3 900 BCPD
Oribi/Oryx oil field
2 260 BOPD
PetroSA
Sable oil field
9 700 BOPD

16. Future production - Ibhubesi gas field (Forest)
Field Development Plan
Application for Production Right
Tested at 182 MMCFGD, BCPD
Needs title and introduction

17. Future oil production will be from deepwater
X 1000 BOE
Ibhubesi gas
Sable oil
Oribi/Oryx oil
South Coast
F-A/E-M gas
Gas Project
2010
2011
2012

18. The future … OIL Oil price remains above $45 World favours African oil
Expected future oil discoveries in deepwater
Orange Basin (BHP Billiton)
Southern Outeniqua Basin (CNR)
GAS
New gas fields to extend life of GTL plant (PetroSA)
Future production from Ibhubesi gas field (Forest)
Future production from Kudu gas field (Tullow)
Development of CBM in the onshore Karoo Basin
2007 LICENCE ROUND WILL UNLOCK SOUTH AFRICA’S TRUE POTENTIAL

19. “Enabling your involvement” Petroleum Agency SA
Thank you

20. AFRICAN
ENERGY
GLOBAL
IMPACT