PERTH (miningweekly.com) – Gas developer Sunbird Energy has secured funding from the US Trade and Development Agency (USTDA) to progress the field development of its Ibhubesi project, offshore South Africa.
The USTDA, a foreign assistance agency funded by the US Congress, has informed Sunbird that it would provide some 80% of the funding for a A$1-million work programme, which was to be undertaken by US-based consultants MHA Petroleum Consultants.
The field development plan included studies on reservoir modelling, production forecasts and the design of a production drilling programme.
Sunbird MD Will Barker said on Monday that the company was delighted to have secured USTDA support for the Ibhubesi project.
“It is very strong validation of the regional importance of Ibhubesi to the South African energy equation. With Ibhubesi being the largest undeveloped gas field in South Africa, its proven reserves can replace high-cost imported diesel and help meet the significant demand for gas-fired power generation.”
Sunbird expected to make a final investment decision on the gas field by early 2015. The initial phase of the project could involve an investment of between R12-billion and R14-billion to produce 28.3-billion cubic feet of gas yearly over an initial six- to eight-year horizon.