Thursday, February 29, 2024

Energy companies merge to acquire Sekaname prospecting licenses

The incorporated joint venture between Sasol Petroleum International (SPI) and Origin Energy Limited (OEL) will facilitate the joint acquisition of three coal and Coal Bed Methane (CBM) prospecting licences (PLs) from Sekaname. During the just-ended Resource Sector Conference, The Sunday Standard learnt that the acquisition of Sekaname’s three PLs, spanning a contiguous area of around 3 000 square kilometers in Botswana’s Central Region as a result of the SPI/OEL 50-50 joint venture agreed upon late 2011, would encourage further CBM exploration.

A large CBM discovery could enable Botswana to alleviate the growing shortage of electricity and liquid fuels in the region, thereby creating employment and enhancing wealth.

Sasol Petroleum Botswana (SPB) the operator of Kubu Energy is a wholly owned subsidiary of SPI, providing all corporate and exploration services. Kubu is a new Botswana registered upstream gas exploration and production company. In Kubu’s milestone achievements, SPI partnered with OEL in July 2011. In September 2011, Kubu Energy Resources was established as a result of a transfer agreement signed between Sekaname and Kubu. The Government of Botswana approved the transfer of the three PLs to Kubu in December 2011. January 2012 involved establishment of the exploration planning phase team while February (2012) saw the receiving of the new licence agreements from the Government formally closed out with the signing of the closing agenda.

Sasol which is dually listed on the Johannesburg Stock Exchange (JSE) and New York Stock Exchange (NYSE) had end of June 2011 a turnover of P142 billion and a market cap of R239 billion. Sasol has a presence in 38 countries employing around 34 000 people. As an integrated energy and chemicals’ company and the world’s largest producer of synthetic fuels, world leader with more than 60 year experience in gas-to-liquids (GTL) and coal-to-liquids (CTL) technology. The company is endowed with tremendous operating and technical expertise of about 255 engineering and science related doctorates giving it a strong intellectual property portfolio of 490 registered patent families.

Within the Sasol Group, SPI manages the Group’s upstream interests in oil, natural gas and shale gas assets. As the leader of all key elements of upstream activity involving exploration, appraisal, development and production, the focus is on natural gas opportunities to enable feedstock supply to existing and future GTL plants. SPI is the gas feedstock supplier to Sasol Gas and other potential southern African gas markets. The SPI asset portfolio is spread over in eight countries, three in Botswana, Mozambique and Papua New Guinea covering a net operation area of 54 407 square kilometers. Headquartered in Johannesburg, SPI has other offices in London, Maputo, Mozambique, Calgary, Canada and Sydney. Australia.

In Botswana, Kubu has committed to complete by September 2013, evaluation of existing open-file aero-magnetic surveys, drill and evaluate up to 30 exploration coreholes, execute a 5-spot product pilot and associated environmental studies, with minimum expenditure profiles totaling P91.65 million. However as it was not possible to complete the work programmes within the stipulated time due to delays during the initial period licensing processes, the company will submit an application to roll-over into the first two-year extension period. Environmental studies to support the Licence Committee Work Programme will commence this July.


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