BHP Billiton says ready to drill off Namibian coast

CAPE TOWN – BHP Billiton , the world’s largest diversified resources company, has identified oil and gas opportunities off the South African and Namibian coastline and is keen to start drilling wells, the company said.

“We are currently targeting exciting exploration benefits in the Orange Basin offshore South Africa and Namibia,” Andrew Fisher, the company’s general manager for petroleum in Southern Africa, told an Oil Africa conference on Thursday. The company was waiting for confirmation from the South African government on its new exploration licence and for an available oil rig before drilling the first deepwater well, he said.”It is difficult to say at the moment when we will be able to start drilling.We we are pretty much ready to go but we don’t have a line of sight, so to speak, to a drilling rig,” Fisher said.South Africa has limited proven oil and gas reserves although exploration off its west coast has indicated possible large petroleum deposits.Gas finds could help to alleviate severe energy shortages in the Western Cape province where the government has already announced the construction of a number of open cycle gas turbines to supply the nearby tourist hub, Cape Town.Fisher said the potential gas fields and energy needs offered the potential for multi-billion dollar investments.BHP Billiton planned to drill one well, at a cost of about US$50 million, to explore oil and gas deposits in the Orange Basin.”Although all the major discoveries on the shelf to date have all been gas we believe there is good potential for oil, especially in the deepwater,” he said.The company was also looking for partners to share in exploring the basin further north, in offshore Namibia.”Our initial evaluation has indicated the potential for large structures in the deepwater, especially the gas-prone part of the basin which is our initial focus.We are also excited about the potential for liquefied natural gas exports,” he said.Fisher added there had been huge interest in partnering its 100 percent stake in blocks off Namibia, but would not give details of the oil companies that had expressed interest.Initial investigations suggested a potential gas resource of between 10 to 15 trillion feet of gas in the southern of its two blocks in the region, he said.- Nampa-ReutersThe company was waiting for confirmation from the South African government on its new exploration licence and for an available oil rig before drilling the first deepwater well, he said.”It is difficult to say at the moment when we will be able to start drilling.We we are pretty much ready to go but we don’t have a line of sight, so to speak, to a drilling rig,” Fisher said.South Africa has limited proven oil and gas reserves although exploration off its west coast has indicated possible large petroleum deposits.Gas finds could help to alleviate severe energy shortages in the Western Cape province where the government has already announced the construction of a number of open cycle gas turbines to supply the nearby tourist hub, Cape Town.Fisher said the potential gas fields and energy needs offered the potential for multi-billion dollar investments.BHP Billiton planned to drill one well, at a cost of about US$50 million, to explore oil and gas deposits in the Orange Basin.”Although all the major discoveries on the shelf to date have all been gas we believe there is good potential for oil, especially in the deepwater,” he said.The company was also looking for partners to share in exploring the basin further north, in offshore Namibia.”Our initial evaluation has indicated the potential for large structures in the deepwater, especially the gas-prone part of the basin which is our initial focus.We are also excited about the potential for liquefied natural gas exports,” he said.Fisher added there had been huge interest in partnering its 100 percent stake in blocks off Namibia, but would not give details of the oil companies that had expressed interest.Initial investigations suggested a potential gas resource of between 10 to 15 trillion feet of gas in the southern of its two blocks in the region, he said.- Nampa-Reuters