ENERGY EXPLORED BY JESSIE TAYLOR
OFFSHORE OIL AND GAS EXPLORATION:
Operation Phakisa Drilling Deep for Economic Development
S
outh Africa is looking to alternative energy models not only to support industry needs but as an economic catalyst. Oil and gas are major internationally traded commodities. For many countries, trade in oil and gas products makes a significant contribution to their GDP. South Africa’s coastal waters are home to enough oil to support the country’s consumption for 40 years, and enough natural gas to supply 375 years of gas consumption. From a public sector perspective, unlocking these energy options falls to the South African Government’s Operation Phakisa. The Oceans Economy Launched in 2014, Operation Phakisa, Oceans Economy looks to harness the largely untapped economic potential of the ocean.
32 | Public Sector Leaders | May 2021
South Africa is surrounded by oceans on three sides, spanning almost 4000 km, creating several vibrant industries that could help build the country’s economy. The cross-sector programme includes developing detailed and practical plans, which allow the government to fast track implementation.
Many national and international companies have expressed interest in investing in South African drilling. The industries that have been highlighted as focus areas include tourism, fishing, shipping transport, ship repair and building, and oil and gas exploration. Offshore oil and gas exploration has found an estimated nine billion barrels of oil and around 11 billion barrels of oil equivalent to natural
gas. However, the extent of the country’s supply is uncertain at this stage, prompting authorities to set out a plan to drill exploration wells over the next decade. The goal of the Department of Mineral Resources is to drill up to 30 exploration wells in 10 years, with the hope that this will lead to the production of around 370 000) barrels of oil and gas per day within 20 years. This production of oil and gas would replace around 80% of the country’s imports. But not only will the country spend less on imports, developing this sector has the potential to create 130 000 jobs, as well as contribute around $2.2-billion to the GDP. A renewed focus on the oil and gas sector will breathe life into South Africa’s energy sector. South Africa has six oil refineries, but three of those are currently not operating.
