OWN CORRESPONDENT, Johannesburg | Friday 6.00pm.
SOUTH African oil-from-gas producer Mossgas on Friday signed a R2,2-billion alliance agreement with United Kingdom-based Dresser-Kellogg Energy Service to develop the EM gasfield in the Bredasdorp Basin.
The companies have formed what is known as the Bredasdorp Alliance which is the largest contract ever in South Africa using alliance principles. Alliancing is frequently used overseas for this type of project and allows for the contractor to share in both the risk and rewards of the contract.
Mossgas estimates that gas deposits in the Bredasdorp Basin could provide Mossgas with sufficient gas until the year 2030.
The two-phase project involves the drilling of up to five sub-sea wells into the EM field, with two wells to be drilled in the initial phase. A single dual lateral well will be drilled into the EBF field immediately after the first two EM wells. The first phase is scheduled for completion in April 2000 and the second phase a year later.
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