Tag Archive | mozambique channel

PASA ready for fracking and sea gas

Gas regulator separate from others….

In a presentation to Parliament, the strategic role of the new Petroleum Agency of SA (PASA) was debated and government officials showed MPs that estimations indicated that at least 20% of PASA’ future effort would be spent on contributing to the legislative and regulatory framework surrounding shale gas in South Africa.

Two major areas of gas and oil exploration revenue for the new body were clearly indicated as income from shale gas operations, or “fracking”, and also from maritime gas investments mainly off the East coast of South Africa, and from current operations on the West coast which were also to be extended, PASA officials said.

Licensing revenue from gas

Current inland petroleum operations and possible extensions of exploration within the main body of South Africa would also continue as a source of revenue, PASA said.

The present mandate of PASA, parliamentarians were told, was to facilitate and regulate the exploration and sustainable development of oil and gas “for the benefit of all South Africans”.     Cash flows from licensing were expected to increase from the forecast R13.7m for 2013 to R147m by 2017 which would be used for oil and gas investments although this was not necessarily ring fenced according to national treasury.

MPRDA includes PASA

The licensing process in terms of the Minerals and Petroleum Development Act, under which PASA falls, includes receiving applications for oil and gas reconnaissance permits, technical co-operation permits, exploration rights and production rights.

In all instances, the major focus, PASA officials indicated, would be to advise and regularly report to the minister of energy affairs on recommendations regarding the industry and “to receive, maintain, store, interpret, evaluate, add value to, disseminate or deal in all geological or geophysical information related to petroleum”, such a data base being the most important part of current work being undertaken.

Skills to be acquired

The future includes the establishment of a force of a number of geologists with specific specialist knowledge, particularly in the near future to support South Africa’s current claim to the international agencies for the extension of its maritime territorial limits.

This is to include some 45,000 km2 off the West Coast of South Africa; about 560,000 km2 in the vicinity of the Prince Edward Islands owned by SA; an area 190,000 km2 south of Madagascar; and the largest area which includes sections of the Mozambique Channel amounting to 1,075,000 km2.

Mozambique Channel

Most of the current litigation involved the application for the area known as “Discovery Ridge” in the Mozambique Channel, where gas deposit realisations are expected to be high.

Income for the new function, other than from “exploration rental” and application for exploration fees, was expected to mainly come from the sale of data but, for the present moment, PASA is expected to operate, for the current year, at a major loss of some R74m as it establishes its mandate, awaits the legal outcome on the moratorium on shale gas exploration and continues to support South Africa’s application to extend its nautical offshore limits.
Refer previous articles in this category
http://parlyreportsa.co.za//cabinetpresidential/to-ignore-fracking-would-be-an-opportunity-lost/
http://parlyreportsa.co.za//bee/mprda-bill-causes-contention-parliament/
http://parlyreportsa.co.za//energy/chemical-industries-plan-for-training-skills-in-fracking/

 

Posted in Facebook and Twitter, Fuel,oil,renewables, LinkedIn0 Comments


This website is Archival

If you want your publications as they come from Parliament please contact ParlyReportSA directly. All information on this site is posted two weeks after client alert reports sent out.

Upcoming Articles

  1. Carbon Tax debate heats up in Parliament
  2. Copyright Bill goes into final stages
  3. Hate Crimes Bill on way back to Parliament
  4. DTI briefs Parliament on the road ahead
  5. RE-IPP4 alive again with LNG interest
  6. Fresh start to Minimum Wage Bill
  7. Competition Commission rough on investors

Earlier Editorials

Earlier Stories

  • AARTO licence demerit system studied  …. In what has been a legislative marathon, the update of the Administrative Adjudication of Road Traffic Offences Act (AARTO) has now reached a stage […]

  • SARS role at border posts being clarified …. In adopting the Border Management Authority (BMA) Bill, Parliament’s Portfolio Committee on Home Affairs agreed with a wording that at all future one-stop border […]

  • Modernising SAPO a culture change ….. sent to clients 27 February…. Stage by stage, Mark Barnes, Group Chief Executive Officer of South African Post Office (SAPO), appears to be reforming cultures and […]

  • OECD money task force waiting for SA   ….sent to clients Feb 7…. Chairperson of the Standing Committee on Finance, Yunus Carrim, made it quite clear in terms of parliamentary rules that […]

  • President Zuma vs Parliament on FICA Bill …..editorial……The convoluted thinking that is taking place in South Africa to avoid the consequences of the law has once again become evident in […]