Sasol announces joint venture participation with Origin Energy in Coal Bed Methane exploration in Botswana

 
Sasol today announced the signing of a Joint Venture agreement with Origin Energy Limited (Origin”), the leading Australian integrated energy company, for the purposes of exploring for Coal Bed Methane (CBM) in Botswana.
 
The joint venture, through Sasol Petroleum International Pty Limited (SPI) the wholly owned upstream oil and gas subsidiary of Sasol Limited, will be known as Kubu Energy Resources (Pty) Ltd (the Kubu Joint Venture). “Kubu” means hippopotamus in Setswana, the language of the people of Botswana.
 
Sasol and Origin, via the Kubu Joint Venture, have signed an agreement to jointly acquire three prospecting licences in Botswana namely PL134/2010, PL135/2010, PL136/2010 from Sekaname (Pty) Ltd, a local CBM exploration company, based in Gaborone. The transaction is subject to final approval by the Botswana government.
 
The three prospecting licences cover an area of approximately 3,000km² and are located in the Central province of Botswana. The joint venture partners plan to conduct a number of exploration activities in the licence area during the next two years to determine the quantity of natural gas available and the feasibility for future commercial development. The first phase of the exploration will include an airborne magnetic survey, sampling of borehole cores and the drilling of test wells.
 
If the first exploration phase proves successful, the joint venture partners will consider committing to a more extensive exploration programme in Botswana.
 
Notes to the editor:
 
CBM is a clean natural gas by-product of ancient plant matter, trapped in underground coal seams. CBM production is a process of desorbing natural gas from coal using wells drilled for that purpose. The process of production is similar to the mine safety processes used in degassing coal mines. The water that is produced during the production process is pumped to the surface and treated so it can be disposed of or recycled for beneficial purposes such as agriculture.
 
Although CBM is produced by unconventional means it is sold and used in the same manner as conventional natural gas.
 
CBM exploration is still in the early stages of development in southern Africa. However, CBM accounts for approximately 10% of total natural gas produced in the United States and makes up most of Australia’s natural gas supply. Australia’s coal bed methane resources (known as Coal Seam Gas or CSG in Australia) will be used to supply LNG to China and the rest of Southeast Asia.
 
A discovery of large volumes of CBM in Botswana could be used to generate power and liquid fuels in southern Africa. The need to decrease greenhouse gas emissions also favours the increased use of natural gas as an alternative to coal.
 
The companies involved in this joint exploration venture combine world-class competencies in CBM operations, upstream project execution and chemicals/fuels/ energy business.
 
Sasol Petroleum International:
 
Sasol Petroleum International manages the Sasol Group’s upstream interests in natural gas and oil assets, and is active in upstream operations: exploration, appraisal, development and production.
 
Origin Energy:
 
Origin Energy is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. Listed in the S&P/ASX top 20 the company has more than 5,200 employees and is a leading producer of gas in eastern Australia. Origin is Australia’s largest energy retailer servicing 4.5 million electricity, natural gas and LPG customer accounts and has one of the country’s largest and most flexible generation portfolios with more than 5,800 MW of capacity, through either owned generation or contracted rights. Origin’s strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth across the energy industry. Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia’s largest CSG to LNG projects based on Australia’s largest CSG reserves base.
 
In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.
 
Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.
 
For more information go to www.originenergy.com.au
 
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