In a major breakthrough for South Africa’s fuel supply, PetroSA recently announced that it had begun pumping gas from five wells situated about 100 kilometres of the south Cape coast.

“By the end of this year (2007), we expect to produce an additional 50 million cubic feet of gas per day from these wells. But production will rise significantly as Sable gas is brought into production,” Mr Sipho Mkhize, PetroSA CEO, said.

The coming-on stream represents an investment of more than R3, 2 billion in new gas production.

The five wells have come on stream barely two years after PetroSA and its United States-based joint venture partner, Pioneer Natural Resources Company, began drilling in the area to sustain the gas-to-liquids refinery in Mossel Bay.

“This is an exciting development and shows PetroSA’s commitment to ensuring our country’s security of fuel supply,” Mr Mkhize said in an announcement.

Painting the background to the South Coast Gas (SCG) project, Mr Mkhize said the project comprised the development of several Block 9 gas reservoirs in the central Bredasdorp Basin, about 100 km off the southern coast.

“It was approved in May 2005 and was completed, within the contingency budget, less than two and a half years later in September 2007. More than R3, 2 billion was invested via a host of technological wonders to make this project a success. This process utilised what is called smart well completion technology for the first time in southern Africa,” said Mr Mkhize.

He added that more than 300 000 working hours were utilised while 25 000 tonnes of pipe and 16 000 welds were used.

The project further saw the installation of over 600 tonnes of subseas manifolds and related equipment and 100 kilometres of control umbilicals between January 2007 and September 2007. This saw the use of specialised vessels.

In terms of black economic empowerment policy, more than 200 000 working hours of local fabrication work was awarded to local BEE companies.

“What is even more encouraging is that these BEE firms have now gone on to secure further contracts for other clients both domestically and in west Africa. “Project safety and environmental record was excellent with no serious injuries to personnel and no environmental incidents,” said Mr Mkhize.

The project extends the life of the GTL plant by several years, thereby preserving several thousands of direct and indirect jobs and contributing several billion rand to the economy of the Southern Cape.  Foreign investment savings of about a billion rand will also be realised.