South African government has announced plans to drill 30 new oil and gas exploration wells over the next 10 years as part of its new exploration strategies in the country’s coastal waters
Jacob Zuma, President of South Africa, said that the new wells over the next 20 years will lead to production of 300,000 barrels of oil and gas per day.
The oil and gas resources at the coastal waters have potential to contribute up to US$54bn to the GDP and create more than one million jobs by 2033 in the country.
The Ministry of Petroleum added that the nation’s coast and adjoining waters have possible resources of as many as nine billion barrels of oil, which is enough to meet 40 years of local consumption needs.
The country also has 11bn barrels of natural gas, which is sufficient to meet 375 years of current domestic demand, it added.
However, international oil firms have been cautious about investing in South Africa because of uncertainty about country’s petroleum laws. The Parliament had passed an amended Petroleum Bill in March 2014 that gives the state an automatic 20 per cent stake in new gas and oil exploration ventures.