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

Value
The initial phase of the project could involve an investment of between R12-billion and R14-billion to produce 28.3 bcf of gas a year over an initial six- to eight-year horizon.

More than $125-million (R1.2 billion) has been been spent on the exploration and appraisal of the project since 2000.

Duration
A final investment decision is expected in 2015, with first gas planned for 2017.

Latest Developments
Sunbird Energy has revealed plans to fast-track the commercial development of its Ibhubesi gas project.

The decision comes after the company signed a memorandum of understanding with South African electricity utility Eskom in December 2013 to jointly invest in the sale of indigenous gas from the Ibhubesi project to the 1 350 MW Ankerlig power station, north of Cape Town.
Eskom plans to replace Ankerlig’s existing high-cost diesel feedstock with natural gas and to convert the plant from an open-cycle gas turbine to a closed-cycle gas-turbine facility.

The project’s maiden reserve of 540 bcf has been independently certified, while a full technical and commercial feasibility study has been completed. Approval for the transfer of title and operatorship has been received.

The company has also received funding from the US Trade and Development Agency for the completion of the field development plan.

The company is completing a preliminary field development plan and the basis of design studies for the project, while also starting front-end engineering and design studies.

Regulatory approvals, including an environmental-impact assessment, will also be progressed while the company advances gas sales negotiations with Eskom.

A final investment decision on the Ibhubesi project, which has been identified as a major part of one of government's 18 strategic infrastructure projects under the Presidential Infrastructure Coordinating Commission, is expected in early 2015.

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 or fax +61 8 9462 6630.
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, corporate communications – eastern hemisphere, Carolyn Smith, tel +44 1224 851099 or email carolyn.smith@woodgroup.com.