South Africa Transfers Ibhubesi Gas Project to Sunbird Energy

Sunbird Energy has announced that 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 the company.

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.

“The transfer allows us to now focus on securing a gas market which will further unlock the significant value of the Project’s proven reserves base and large exploration potential. On our current economic modelling of the 2P reserves base, the Project has a potential Net Present Value of over $1 billion,” Sunbird Energy’s Chairman Kerwin Rana said.

Sunbird is advancing two key routes to market for the Project, namely gas supply to Eskom’s Ankerlig Power Plant which is currently burning expensive imported diesel, and the Department of Energy’s Independent Power Plant tender for a new 474 MW gas fired facility.

Having completed the Concept Select phase of the Project, Sunbird has now commenced Field Development Planning as part of the Front End Engineering and Design phase, this will enable the Project to reach a Final Investment Decision in early 2015.

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