The South African Government, through the Petroleum Agency of South Africa (PASA) and the Department of Mineral Resources (DMR), has approved the Section 11 transfer of the offshore Block 2A licence, which includes the Ibhubesi Gas Project to Sunbird Energy.
The approval permits Sunbird’s acquisition of a controlling interest in the production licence. Sunbird now holds an operating interest of 76% with the South African national oil company PetroSA holding the remaining 24% of the licence.
“Sunbird, along with our South African empowerment partner Umbono Capital, is very pleased with this outcome. This approval represents the achievement of a critical milestone for Sunbird, and consolidates our position as the operator of South Africa’s largest and most advanced undeveloped gas field with a significant 76% working interest”, Sunbird Energy’s Chairman Kerwin Rana said.
Sunbird is advancing two key routes to market for the Project, gas supply to Eskom’s Ankerlig Power Plant that is currently burning expensive imported diesel, and the Department of Energy’s Independent Power Plant tender for a new 474MW gas-fired facility.
Having completed the Concept Select phase of the Project, Sunbird has now commenced Field Development Planning as part of the FEED phase. This will enable the project to reach a final investment decision in early 2015.
