Sundays River Valley Local Municipality might be explored for oil and gas

JUNE 24, 2015

An area near Nanaga, in the Sundays River Valley Local Municipality, might soon be explored for oil and gas if a Production Right’s application in the area is approved by the Department of Environmental Affairs.

Aberdeen Offshore Engineering Pty Ltd (AOE), which is involved in the identification and exploration of potentially viable economic oil and gas deposits in onshore areas in Southern Africa, has reportedly already appointed environmentalists to conduct a Scoping and Environmental Impact Assessment for the project.

The company has applied for a Production Right in terms of the Mineral and Petroleum Resources Development Act for onshore petroleum located within the Algoa Basin, which is near Nanaga.

If approved, the Algoa Basin Oil Production Project, is scheduled to take place over a period of 20 years.  The project will reportedly cover an area of about 4 832 hectares in total - with the total area to be disturbed by production activities limited to two to three hectares.

The Algoa Basin has long been identified as an area with the potential for economically viable onshore hydrocarbon deposits and has previously been explored with proved indications of oil-bearing sediments.

It was after the evaluation of data from previous explorations and geophysical surveys, that AOE decided to continue with the Production Right Application.

The recoverable reserve for the area has been estimated to be at least 3.8 million stock tank barrels at a 50 percent weighted probability, with an estimate flow rate of 400 – 500 barrels per day.

It is understood that the proposed project will not involve hydraulic fracturing (fracking) and that the proposed crude oil (only) production activities will be entirely conventional in nature.

Environmental Impact Management Services (Pty) Ltd (EIMS), an independent environmental consulting firm, will assist AOE in preparing and submitting all the required reports and documents to authorities, as well as undertake an integrated Interested and Affected Party (I&AP) consultation process.

In June, EIMS released a Background Information Document (BID) for registration of the I&AP’s.