Oil and gas exploration took a huge turn for the better with the discovery of three potential sources in the Southern Cape shores of South Africa. yesterday, a giant rig arrived in Cape Town. The rig’s set to drill in the Luiperd prospect in Block 11B/12B. The block marked for exploration sits just off the coast near the Western Cape’s Mossel Bay.
South Africa’s Gas and Oil fields.
South Africa, once famous for her gold, now looks at black gold. Moreover, the designated area’s tipped as extremely rich. The rig named, “DeepSea Stavanger” soon goes to work in the Brulpadda discovery area, Mining Weekly reported. Furthermore, Gwede Mantashe, Minister of Mineral Resources and Energy says the “The arrival of the drill rig, following the recent successful Brulpadda discovery, reaffirms confidence in South Africa as an investment destination of choice for the exploration of oil and gas.”
“Brulpadda” (bullfrog) is an area of approximately 19 thousand square kilometres. Importantly, the expected bounty ranges from 500 million to one billion barrels “of oil equivalent”. The investors include Total (45%) Qatar Petroleum (25%) CNR International (20%) and Main Street, a South African Consortium (10%). However, the question is why so little investment from South Africa? Additionally, the Saudi’s build an oil refinery in South Africa. Actually, why isn’t South Africa building the oil refinery?
Recent gas exploration in Mozambique – deadly consequences
Recently, Mozambique’s gas discovery sparked an Islamic insurgency. Furthermore, on reaching out to South Africa for military assistance, South Africa received a warning from ISIS to stay out of Mozambique. Additionally, the investors in Mozambique are Total South Africa. Importantly, is South Africa prepared for trouble? Seeming, historically, it appears that Islamic extremists follow the oil money.
In fact, Africa CGTN reported that on Wednesday, the insurgents took a crucial port, Mocimboa da Praia. Heavily defended after days of fighting, naval forces simply ran out of ammunition.
— Argaam Plus (@ArgaamPlus) January 20, 2019
Is Joe Public in South Africa going to benefit?
Interestingly, the only South African who may benefit directly from the oil find is former MTN boss, Phuthuma Nhleko. According to Business Insider, Nhleko is a director of Main Street according to company records. \ Moreover, a Canadian company, Africa Energy holds 49% of Main Street and Nhleko’s “Arostyle Investments owns 51%”.
Furthermore, the expected revenue could exceed R685million. In Saudi Arabia, and formerly Libya, under Gaddafi, the citizens benefited from oil revenue. Importantly, the big question on South African minds is – how will citizens here benefit? Undoubtedly, tax revenues will be boosted. Irreverently, most South Africans imagine the revenue will be channelled to tenderpreneurs and Mr Magashule’s family businesses.
What do you think? Why are foreigners building oil refineries when South Africa has millions of unemployed?
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