RSA Onshore Gas: Bulwark TCP Applications Granted

We are pleased to advise that Bulwark Oil and Gas SA (Pty) Ltd (“Bulwark”), an affiliate of Bastion Oil and Gas South Africa (Pty) Ltd (“Bastion”), has been granted seven technical cooperation permits (“TCP”). TCP209, TCP210, TCP211, TCP213, TCP214, TCP215 and TCP217 are detailed on the attached maps above and below. The combined TCP areas measure approximately 26 610 km².  The current Bastion TCP areas measure approximately 3 295 km². We would like to thank the Petroleum Agency for the speed and professionalism with which these applications were dealt with.

It is our belief that these TCP areas hold onshore gas potential which together with renewables is the future of South Africa’s just energy transition.  The significant future of gas in South Africa was echoed at the Enlit Africa conference held this week in Cape Town.

In a recent article that appeared in News24 the following was said:

Andre de Ruyter, Eskom’s CEO stated that South Africa’s power system as an island. The country does not have the luxury of tapping into alternative energies from its neighbours in the way that Germany relies on France for nuclear or Norway for hydropower when its wind turbines are not generating power.  We need dispatchable power to make up for the variability we inevitably see from renewable energy. Renewable energy only works when the wind blows or the sun shines. Eskom’s modelling shows that there cannot be a stable system without accessing a resource like coal. Eskom will be a significant user of coal for an extended period, even beyond 2035, after 22GW of power stations are decommissioned. But gas is less polluting than coal and can provide a secure supply.

 Thabang Audat, chief director of energy planning at the Department of Mineral Resources and Energy (DMRE), shared views that South Africa is seeking gas from the Southern African Development Community region and indigenous gas. Other options are to expand the current Rompco pipeline. There are also expectations that Total Energies exploration block 11B/12B or the Brulpadda find off the east coast, will start yielding gas by 2027, said Audat.  The DMRE is finalising the request for proposals to procure 3 000MW of gas-to-power by October this year. We believe the programme will stimulate gas demand in South Africa.  The department is also finalising a Gas Master Plan, which will outline where gas demand will come from and the supply infrastructure required. This plan is expected to be finalised by March 2023. It requires Cabinet approval.

Bastion is in the final stages of preparing its proposed work programme and budget for its exploration right applications which will be submitted this month to the Petroleum Agency.

As Bastion and Bulwark continue to de-risk these onshore gas opportunities, we look forward to partnering with like-minded companies, development finance institutions and industry as joint venture partners, financiers, contractors and gas off-takers.

 

For more information please contact the undersigned at barrisford@bastionoil.com or info@bulwarkoil.co.za

 

 

Barrisford Petersen
Founder and Managing Director
Bastion Oil and Gas South Africa (Pty) Ltd
Bulwark Oil And Gas Sa (Pty) Ltd
Rockit Energy (Pty) Ltd

 

 

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