PetroSA gets regulatory approval for gas exploration

01 Feb 2016 | Admin Author

PetroSA's Project Ikhwezi has been granted regulatory approval by the National Energy Regulator of South Africa to produce gas feedstock from the offshore F-O development fields.

Project Ikhwezi is an initiative to secure additional reserves to sustain its Mossel Bay Gas-To-Liquids refinery.

The approval follows PetroSA's application to Nersa in December 2011.

The company says the approval is a major milestone in the project and allows the National Oil Company to produce natural gas from the F-O development fields when the project is commissioned.

The wells are based off the F-O field located 40 kilometres south-east of an offshore production platform near Mossel Bay.

Production of the gas from the first well is planned for mid-2013.

PetroSA Group CEO Ms Nosizwe Nokwe-Macamo said Project Ikhwezi was one of the most important initiatives in the company's history.

"Project Ikhwezi creates a critical opportunity for sustaining the operations of our GTL Refinery. It ensures that we continue to play a vital role in the South African petrochemicals market. Most importantly, PetroSA will continue to be a source of much-needed employment in the Southern Cape," she said.