South Africa's National Oil Company, Petro SA, is set to make a loss of R14.9 billion.
According to earlier reports the loss resulted from the failed Project Ikwezi, which was intended to extend the life of Mossgas by drilling new wells.
PetroSA, South Africa's National Oil Company made a loss of R14.9 billion.
The Business Times reported this week that the R14.9 billion loss, include R14 billion rand impairment,resulting from the failed Project Ikwezi.
The intention with project Ikwezi was to extend the life of Mossgas by drilling new wells.
The Business Times reported the wells however only yielded 10% of the gas that was originally anticipated.
According to documents that were handed to the Cape High Court last week, PetroSA will miss all of its key performance targets for the year.
In the mean time the Department of Environmental Affairs approved the development of the F-O gas field, 110km offshore Mossel Bay.
The approval for PetroSa includes the possibility to extend the life expectancy of its gas to liquids refinery in Mossel Bay by increasing output from the wells.
A couple of weeks ago, the Orca Floating Production and Storage Facility was also recalled by PetroSA. The Orca produced millions of barrels of crude oil from the Oribi and Oryx
oilfields of South Africa's southern coast.
