While anticipated, Total’s second gas condensate discovery announced on Wednesday in South Africa is nonetheless good news after a year of deep uncertainty and struggles for the African energy sector.
With partners Qatar Petroleum, CNR International and Africa Energy Corp, Total was able to start its multi-well exploration programme on Block 11B/12B only two months behind schedule, delivering what remains until now the year’s only discovery across sub-Saharan Africa.
The Luiperd-1X well was drilled to a total depth of 3,400 meters and encountered 73 meters of net gas condensate pay within the Paddavissie Fairway, which already includes the 2019 Brulpadda discovery.
This second find confirmed the gas potential in South Africa and is expected to be followed by the drilling of a third, a potential fourth, exploration wells on the same block.
More important, the discovery further positions Africa as a global and competitive gas frontier that continues to offer attractive exploration and gas commercialisation opportunities.
The upcoming Africa Energy Outlook 2021 of the African Energy Chamber identified several such high-impact wells for 2021 and 2022 that could yield similar discoveries in South Africa and Namibia.
Under its 2021 projections to be released in November, the AEC sees gas production and consumption increasing on the continent.
More specifically, new frontiers such as South Africa are expected to increasingly consume natural gas for industrial purposes and power generation. Such developments could be a pillar for economic recovery post-COVID-19, but will require the promotion of an enabling environment providing investors with sound and attractive policy and contractual frameworks.
“The African Energy Chamber has always seen Africa as a true frontier for exploration and promoted a much bigger use of gas across our economies to create jobs and support industrialisation. The gradual opening of a new domestic gas hub in South Africa is a very welcoming development that needs to be supported with efficient and transparent policies, and quick approvals of all necessary permits and licences for gas to be commercialised and create value for South Africans,” said Nj Ayuk, AEC’s Executive Chairman.
