US sanctions US$700,000 fund for offshore South Africa gas project

offshore sa-QR9iudjz0 sxc optAn independent resource assessment completed in June 2013 confirmed that the Ibhubesi reserve is capable of producing 6.3mn cubic metres of gas per day. (Image source: Tom Jervis/Wikimedia Commons)Sunbird Energy Limited has announced that it will receive US$700,000 from the US Trade and Development Agency (USTDA) to develop a sub-surface plan for the Ibhubesi offshore gas project in South Africa

The study includes construction of a detailed 3D gas reservoir model, assessment of production flow rates, identification of preferred drilling locations, and well design to maximise production against cost and integration with the facilities development plan, the South African oil and gas firm said.

Catherine Hill-Herndon, US Chargé d'Affaires for South Africa said, “This project supports both US President Obama’s climate action plan and South Africa’s Integrated Resource Plan 2010, which calls for the expansion of gas-fired power generation from two per cent to 11 per cent of the total supply by 2030.”

Will Barker, managing director of Sunbird Energy Limited, said that the company was delighted to have secured US government support for the advancement of the Ibhubesi Gas Project.

“It is a very strong validation of the regional importance of Ibhubesi to the South African energy equation. As Ibhubesi is the largest undeveloped gas field in South Africa, its proven reserves can replace high-cost imported diesel and help meet the significant demand for gas-fired power generation,” he added.

Meanwhile, an independent resource assessment completed in June 2013 confirmed that the Ibhubesi reserve is capable of producing 6.3mn cubic metres of gas per day.

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