How about a trip back in time to witness the birth of a South African energy giant? That’s precisely what we are going to do right here at PetroSA in Cape Town.
PetroSA was formed in January 2002. It emerged from the merger of three entities. These were Mossgas Proprietary Limited, Soekor Proprietary Limited, and parts of the Strategic Fuel Fund Association. This merger was a historic milestone.
Before PetroSA came to be, Soekor searched for oil. The first search started in Beaufort West in the Western Cape. Small oil deposits were found. These deposits were not commercially viable.
The Superior Group drilled the first offshore well. This led to discovering natural gas. These deposits lay in the continental shelf off the Southern Cape coast.
Later, the F A gas field was discovered. It was located in Block 9 of the Bredasdorp Basin. Soekor and other companies drilled 48 boreholes here. Gas was found in 25. Oil was found in seven.
Then came the discovery of the E M field. Together with the F A field, it enabled the GTL project in Mossel Bay.
Oryx was a significant find. It became South Africa’s first oil-producing field. PetroSA owns 100% of Oryx.
The Oribi oilfield followed. It lies 140 km southwest of Mossel Bay. PetroSA owned 80% of Oribi with Energy Africa Limited holding the rest. The first oil was extracted from the E AG1 and E AR1 boreholes during tests. It was sold locally.
In 1992 the GTL refinery in Mossel Bay began production. It used the F A fields. At the time, it was the world’s largest commercial GTL refinery.
The F O gas project was initiated to increase gas supply to the GTL refinery. Ikhwezi also started producing. More recently, Brulpadda and Luiperd were discovered in ER 67.
PetroSA plays a vital role in South Africa’s energy sector. It strives to ensure a secure energy supply. The company aims to mitigate the impact of oil price changes. It also works to promote transformation in the petroleum industry.
The vision of PetroSA is to be a leading provider. It wants to offer sustainable and affordable energy. This should benefit all South Africans. The company is transitioning to cleaner energy.
In 2017, PetroSA signed a $400 million deal with Rosgeo. This Russian company focuses on exploration.
In 2020, plans were approved to merge PetroSA. The merger partners are the Strategic Fuel Fund and the South African Gas Development Company. The goal is to create a new national petroleum company.
PetroSA has faced challenges. It was implicated in the “Oilgate” scandal. This involved transferring R11 million to the African National Congress before the 2004 elections. For the year 2020, PetroSA recognized a loss of R5.6 billion.
As we conclude our visit to PetroSA, remember its vital role in South Africa’s energy landscape. From its historic mergers to its discoveries and challenges, PetroSA continues to shape the nation’s energy future. Its story is a testament to South Africa’s ongoing quest for energy independence and sustainability.