PRETORIA South Africa (Xinhua) --
South Africa will accelerate offshore oil and gas
exploration to reduce dependence on imports, President Jacob
Zuma has said.
The government will spend 9.2 billion
rand (about 730 million U.S. dollars) to develop the Saldanha
Bay on the southwestern coast as an oil and gas hub, Zuma said
Work on some projects has started with the phased gas
pipeline routes having been defined, he told a media brief on
the implementation of 'Operation Phakisa' which was launched
Operation Phakisa is derived from Malaysia’s Big Fast Results
Methodology which the Asian country is said to have used
successfully to achieve rapid economic transformation.
The project also forms part of South Africa’s Nine Point Plan
to reignite growth and boost job creation.
Once carried out, the project would produce 370,000 barrels
of oil and gas per day, and create up to 130,000 jobs, with an
annual contribution of 2.2 billion U.S. dollars to the GDP, Zuma
Meanwhile, environmental authorization has been approved for
the Burgan Fuel Storage facility in the port of Cape Town, he
Zuma’s words come at a time when the country is gripped by a
power shortage that has led to constant load shedding over the
past nine months.
The exploration of oil and gas is expected to ease the
worsening energy shortage.
President Zuma promises
economic boost from 'Operation Phakisa'
JOHANNESBURG South Africa (Xinhua)
-- South African President Jacob Zuma
voiced optimism on Thursday that various sectors of the South
African economy are set to receive a big boost from 'Operation
The operation, adopted by the government from the Malaysia’s
Big Fast Results approach to economic development, has been
adopted by Zuma’s administration to fast-track economic growth
and create much-needed jobs.
Zuma said the development of the country’s ocean economy has
been the first priority of Operation Phakisa, which began last
"Opportunities are being explored in various areas, one being
the repairing of rigs and the servicing of vessels.
According to Zuma, South Africa’s coastlines are capable of
generating over four billion U.S. dollars and creating up to
Thirty exploration wells will also be drilled to produce oil
Operation Phakisa has also taken an interest and focus on
mining to build partnerships between the government and key
stakeholders in the mining sector to unlock investment.
The operation has also focused on basic education to improve
its quality by introducing information communication technology
in delivery and management of education.
"The implementation of Operation Phakisa and Big Fast Results
methodology has certainly changed the way government conducts
its business and introduced a new approach of syndication to
resolve issues," Zuma said.
South Africa to issue
licences for shale gas exploration: Zuma
CAPE TOWN South Africa (Xinhua) --
The South African government will soon be issuing
licences for the exploration of shale gas drilling through
hydraulic fracturing, or fracking, President Jacob Zuma has
Zuma was speaking in Pretoria on the occasion of the
presentation of credentials by a number of new foreign heads of
mission accredited to South Africa.
"It is this government’s hope that we, together with your
respective governments, will find practical opportunities to
enhance the economic opportunities the shale gas sector has to
present," Zuma said.
Zuma quoted recent estimates as saying South Africa has eight
largest shale gas reserves in the world and the Karoo area in
the Northern Cape Province is believed to be holding up to
390-trillion cubic feet of recoverable gas reserves.
But Zuma did not say when the government will issue the
licences for shale gas exploration or under what conditions
these licences will be issued.
The exploration of shale gas is expected to ease the
worsening energy shortage confronting the country which has been
hard hit by constant power outages for nine months running.
"We continue to pursue the development of an energy mix as
energy security is critical to economic growth and social
development," Zuma said.
"We are also determined to see through much needed
infrastructure development programmes at continental level which
will integrate African economies," Zuma said.
South Africa, he said, is open for business and is part of a
growing continent, which has nine of the world’s fastest growing
Since the adoption of the National Infrastructure Plan in
2012, which laid the blue print for the transformation of South
Africa’s economic landscape, the country has embarked on a
massive infrastructure roll-out drive.
However, environmentalists have expressed strong opposition
to the government’s move to explore shale gas. The Treasure
Karoo Action Group (TKAG) says shale gas reserves, globally,
have been overstated and world leaders are misinformed in this
There have been concerns about the effect the exploration
activities will have on water quality and availability in areas
where water is scarce.
America’s Energy Information Administration (EIA) estimates
that South Africa might boast shale gas reserves of around 485
trillion cubic feet.
The gas would only be accessible by hydraulic fracturing or "fracking",
which is to pump water and chemicals into rock at high pressure.
In April 2011, in response to opposition from environmental
groups and the local community, South Africa’s government
slapped a moratorium on fracking.
The South African cabinet has established an
Inter-departmental Task Team to address concerns in developing
shale gas in the country.
These concerns include environmental impact on ecosystems,
waste management and water.