Name of the Project
Ibhubesi gas project.

Location
The Ibhubesi gasfield is located in Licence Block 2A off the West Coast of the South Africa. The production right area is about 5 000 km²  in extent and is located, at its closest point, an estimated 60 km off the Northern Cape coast in water depths of between 200 m and 250 m

Client
Sunbird Energy (SNY) signed a conditional agreement with a South African consortium to divest of its noncash assets for A$8.5-million in April this year.

The assets included a 74% interest in the Mopane, Springbok Flats and Springbok Flat West coal-bed methane projects, as well as A 76% interest in the offshore Ibhubesi gas project.

The Ibhubesi gas project is presently being progressed by SNY and its joint venture partner Petroleum Oil and Gas Corporation of South Africa.

Project Description
The undeveloped Ibhubesi gasfield – the largest in South Africa – has 1P reserves of 210-billion cubic feet (bcf) and 2P reserves of 540 bcf.

It was initially envisaged that the gasfield would be linked by two subsea production pipelines to an onshore gas processing facility on the Northern Cape coast, where the gas would be processed before being compressed for distribution through an onshore export pipeline.

In October 2013, State-owned power utility Eskom issued a request for information (RFI) for the supply and delivery of gas to its 1 350 MW Ankerlig open-cycle gas turbine peaking power station near Atlantis, which currently operates using diesel as a fuel source. In response to this RFI, Sunbird is considering various additional and alternative project components – from what was originally approved – to supply indigenous gas feedstock to Ankerlig and potential end users on the Saldanha Peninsula. In 2015, Sunbird signed a gas sales agreement term sheet with utilities provider Eskom for the supply of 30-billion cubic feet a year of gas from Ibhubesi for up to 15 years, with Sunbird having described the agreement as a major step towards the commercialisation of the gasfield at the time.

According to the final environmental impact report (EIR), the revised project includes:
• the installation of either a floating production, storage and offloading unit (FPSO) or a semisubmersible production platform in the licence area;
• an estimated 400 km offshore pipeline, 14” to 18” in diameter, from the production facility to a shore-crossing site between Grotto Bay and Duynefontein (the southern pipeline alternatives) and one on the Saldanha Peninsula – the northern pipeline alternatives (in the Western Cape);
• an onshore pipeline between the shore-crossing site and Ankerlig and potential end users on the Saldanha Peninsula; and
• an onshore gas-receiving facility, at a location adjacent to Ankerlig or the Silwerstroom Strand water treatment plant.

Jobs to be Created
About 48 to 72 people are expected to be employed to operate the production facility, with roughly half this number being on the unit at any one time.

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

Duration
Not stated.

Latest Developments
The draft EIR has been updated to a final EIR and was made available for a further 30-day review and comment period from May 31, 2016, to  July 1, 2016.

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 tel +44 1224 851099.