Boston, MA -- (ReleaseWire) -- 07/22/2014 -- South Africa's oil and gas sector is set for growth, as an upsurge in exploration and the increasing prospectivity of the country's offshore acreage point towards considerable upside potential for the country's long-term upstream prospects. The country also has vast unconventional resource potential, and with growing political support lifting the moratorium on hydraulic fracturing, we could see shale development permits issued as early as H1 2014. However, the passage of the mineral and petroleum resources development bill has caused widespread unease in the industry, and deep regulatory uncertainty may cloud the country's long-term oil and gas outlook, unless the government can offer greater clarity to potential investors.
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The main trends and developments in South Africa's oil and gas sector are:
- Interest peaked in South Africa's offshore potential with Shell, ExxonMobil and now Total exploring in the deeper-water areas. Total has announced that it will begin drilling operations in its 11B/12B license in 2014. Shell also hinted that it would begin drilling operations in its Orange Basin permit at some point in 2014, although this has not been finalised.
- There has been significant concern surrounding the mineral and petroleum development amendment bill, which was passed by parliament March 2014. The bill offers the state a 20% free carried stake in all new developments, no limit on state ownership of assets and no clarity regarding the pricing terms for stake acquisition. Investors have voiced concern about potential resource nationalism and asset fire sales. It is probable that this level of regulatory uncertainty will delay major investment decisions over the short term, with long-term risks to the downside, depending on the manner of the bill's implementation.
- In September 2012, South Africa's Cabinet announced the end of a temporary ban on hydraulic fracturing (fracking), which had been in place since April 2011. Bundu Oil & Gas,
The South Africa Oil & Gas Report has been researched at source and features Business Monitor International (BMI)'s independent forecasts for South Africa including major indicators for oil, gas and LNG, covering all major indicators including reserves, production, consumption, refining capacity, prices, export volumes and values. The report includes full analysis of industry trends and prospects, national and multinational companies and changes in the regulatory environment.
BMI's South Africa Oil & Gas Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and competitive intelligence on the South African oil and gas industry.
- Benchmark BMI's independent oil and gas industry forecasts for South Africa to test consensus views - a key input for successful budgeting and strategic business planning in the South African oil and gas market.
- Target business opportunities and risks in the South African oil and gas sector through reviews of latest industry trends, regulatory changes and major deals, projects and investments in South Africa.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.
BMI Industry View
Summary of BMI's key forecasts and industry analysis, covering oil and gas reserves, supply, demand and refining, plus analysis of landmark company developments and key changes in the regulatory environment.
Regional perspective on size and value of industry sector; comparative rankings by production, refining, imports and exports of oil, gas and LNG.
Business Environment Rankings
BMI's Oil and Gas Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (independents, NOCs, IOCs and oil services companies) in the upstream and downstream markets.
The rankings methodology makes sophisticated use of more than 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.
Oil Market Outlook and Oil Products Outlook
Based on our country coverage of over 99% of global oil and gas production and consumption, BMI provides demand, supply and price forecasts to end-2018 for oil, gas and oil products
BMI Industry Forecasts
Historic data series and forecasts to end-2018 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
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