Name and Location
Ibhubesi gas project (IGP), off the Northern Cape coast, South Africa.

Client
Sunbird Energy has acquired a 76% interest in the production right for Block 2A, within which the Ibhubesi gas project is located, from Forest Oil and Anschutz Corporation.

The acquisition enables the ASX-listed company to operate and develop Ibhubesi with South Africa’s national oil company, PetroSA, which will hold the remaining 24%.

Project Description
The IGP is located 380 km north of Cape Town, in Block 2A, which is a production right that covers 5 000 km2. The undeveloped gasfield – the largest in South Africa – has 1P reserves of 210-billion cubic feet (bcf) and 2P reserves of 540 bcf.

Value
The project could cost between R10-billion and R20-billion to implement.

Duration
A final investment decision is expected in 2015, with first gas planned for 2018.

Latest Developments
Sunbird Energy is proposing additional components to its Ibhubesi project as it considers supplying indigenous gas to Eskom’s Ankerlig power station, in the Western Cape, according to a recent draft environmental-impact report on the project.

Sunbird signed a gas sales agreement term sheet with Eskom earlier this year. The agreement is for the supply of 30 bcf of gas a year for up to 15 years.

Sunbird has described the agreement as a major step towards the commercialisation of the Ibhubesi gasfield.

As a result of the agreement with Eskom, Sunbird is considering inclusion of, among others, a floating production and offloading unit or a semisubmersible production platform in the licence area, an offshore pipeline, an onshore pipeline and an onshore gas receiving facility.

Owing to the proposed changes, Sunbird has issued the draft environmental-impact report for a 40-day comment period to November 11.

The project must comply with the National Environmental Management Act and the Mineral and Petroleum Resources Development Act.

The Ankerlig power station, which is meant to provide electricity during peak demand, has been running on diesel, which is expensive. In 2014, Eskom spent about R11-billion on diesel to power the Gourikwa and Ankerlig power stations.

Key Contracts and Suppliers
MHA Petroleum Consultants (field development plan) and WGK (engineering and project management services).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sunbird Energy, tel +61 8 9463 3260, fax +61 8 9462 6630 or email info@sunbirdenergy.com.au.
PetroSA group communications manager Thabo Mabaso, tel +27 21 929 3365 or email thabo.mabaso@petrosa.co.za.
MHA Petroleum Consultants, tel + 303 277 0270 or fax +1 303 277 0267.
WGK director for corporate communications: eastern hemisphere Carolyn Smith, tel +44 1224 851099 or email carolyn.smith@woodgroup.com.