Sasol in joint venture to explore shale gas in SA

Petrochemicals group Sasol said on Monday it would explore for shale gas in South Africa’s Karoo Basin in a joint venture with Statoil ASA and Chesapeake Energy Corporation.

The South African company said the joint venture was awarded a permit to explore for shale gas—a clean natural gas produced from shale, a type of sedimentary rock mainly consisting of clay and some organic matter—in Free State, Eastern Cape and KwaZulu-Natal.

“The permit awards the applicants the exclusive right to study the prospectivity for shale gas in the Karoo Basin for a period of up to 12 months but does not include any surface activity or drilling,” Sasol said in a statement.

The joint venture partners plan to evaluate existing and available geological information within the area to determine the potential for gas, Sasol said.

Sasol said if the geological evaluation proves successful, the partners would consider committing to a more extensive exploration programme.

“Large gas discoveries in the Karoo Basis could also help alleviate South Africa’s power and fuels shortages and assist in creating employment and wealth for the country,” Sasol said.—Reuters