By Larry Claasen
SADSTIA says it is not opposed to offshore oil and gas exploration but says long-term impacts on established industries must be considered.
SOUTH Africa’s deep sea trawlers are concerned about the possible impact of mineral and energy extraction off the country’s coast.
The fishers fear that offshore exploration and extraction could harm the sector, which employs 12 400 people and contributes R8,5-billion annually to the economy.
They fear that drilling, sonar bathymetry surveys, oil spills and the possible laying of pipelines across established trawl grounds could negatively affect them.
The South African Deep-Sea Trawling Industry Association (SADSTIA) said in its 2023 annual review that, in principle, it was not opposed to offshore oil and gas exploration.
It understands the potential economic benefits of “non-living marine resources” to the country but said, “such exploration and production should be undertaken responsibly and with due care and consideration of long-term impacts on established industries such as fishing that support many thousands of jobs.”
SADSTIA said it had met with the Department of Forestry, Fisheries and Environment, and the other fisheries associations, about research into the impacts of seismic surveys on plankton and commercially valuable fish species.
It said it and its partners were also in discussion with the Offshore Petroleum Association of South Africa (Opasa) about ways to fund this research.
SADSTIA secretary Johann Augustyn says the sticking point in the negotiation was who would fund the research. “We have recently re-engaged and hope that there will be some buy-in to an approach. But we have not reached an agreement.”
TotalEnergies’ decision in July to withdraw from the Brulpadda and Luiperd gas projects on the south coast has effectively ended gas exploration activities in that area – for now.
Though laying an undersea pipeline on the south coast now looks unlikely, Augustyn says there was still a chance of one being laid on the west coast. This was despite TotalEnergies also withdrawing from offshore exploration in Block 5/6/7 on the west coast.
TotalEnergies EP South Africa holds a 45% interest in Block 11B/12B, where the Brulpadda and Luiperd discoveries are, and a 40% interest in Block 5/6/7.
The French company withdrew because it appeared “to be too challenging to economically develop and monetise these gas discoveries for the South African market.”
Though TotalEnergies has withdrawn from the south and west coasts, it is still active around the Namibian and South African border. Activities in this area will include sonar bathymetry surveys, drop core sampling and exploration well drilling.
Aside from funding research into the possible impact of seismic surveys, SADSTIA also wants to establish a broader framework with the offshore petroleum industry to ensure that gas and oil exploration do not negatively impact the fishing industry.
The chairperson of Opasa did not respond to CBN’s request for comment on SADSTIA’s concerns.
High risk/reward
The South African government sees both industries as major economic drivers. However, given the scale of their potential, the oil and gas sectors are seen as potentially transformational.
Then Mineral Resources and Energy minister Gwede Mantashe said at a conference last year that the Petroleum Agency of South Africa (PASA) estimates that South Africa holds 27-billion barrels and 60-trillion cubic feet (tcf) of prospective oil and gas resources on the south, east, and west coasts.
He pointed to Guyana and Namibia as examples of how developing countries can use energy extraction to drive economic development.
“Not only did Guyana’s economy grow by 62,3% in 2022, but its domestic gas production has enabled Guyana’s government to replace heavy fuel oil in electricity generation with indigenous natural gas, and as a result reduced electricity tariffs by 50%.”
Gas and oil extraction, however, comes with some risk.
The Deepwater Horizon oil spill in the Gulf of Mexico in 2010, for example, led to 4,9-million barrels of oil seeping into the sea. BP, the company responsible, ended up paying over $65-billlion in cleanup costs, charges and penalties.
According to research by the University of Western Australia, the Gulf of Mexico commercial fishing industry lost $247-million due to post-spill fisheries closures.
The US’s National Oceanic and Atmospheric Administration says marine life was still negatively affected five years after the spill.
