State oil and gas company PetroSA has published a request for proposals (RfP), asking interested parties to submit conceptual proposals to partner with the national oil company to develop upstream assets that generate revenue for PetroSA from sustainable way
The main objective of these partnerships is to help PetroSA to commercially monetize the remaining gas potential in Block 9 production rights and to bring PetroSA into Block 3A/4A and Block 9/11a.
PetroSA says it will link the projects’ success to financial incentives for stakeholders, which could take the form of production revenue sharing, performance-based contracting or equity participation. Proposals should preferably include full or partial financing of the project. Applications must be submitted to tenders@petrosa.co.za by 3pm on 28 February, separately by opportunity or asset.
PetroSA’s gas-to-liquids facility has operated since the early 1990s, using indigenous natural gas reserves from its offshore Mossel Bay field (Block 9/11a) to produce synthetic motor fuels for the local market. PetroSA also has stakes in Block 2A, Block 2C and Block 5/6 and 7.
Without further development of indigenous gas production or alternative feedstock strategies, the facility has run out of gas feed. It is capable of processing up to 18,000 bbl/d of domestic or imported condensates.
PetroSA has made Block 3A/4A and Block 9/11a available for joint collaborations to unlock hydrocarbon potential.
The company wants to extract as much as possible of the remaining gas from the existing wells, using optimal technical solutions. The scope, however, is not limited to existing wells only. For example, if there is an opportunity to drill new wells in the existing production right, PetroSA will consider it.
Opportunities also exist to expand gas production by developing new fields in production rights near existing offshore infrastructure.
PetroSA says an integrated assessment involving all disciplines from geological, geophysical, production engineering, reservoir engineering, well engineering, completions and commercial will be required.
The proposed technical solution should ideally be modeled using well and reservoir models and/or reservoir simulation.
PetroSA will give preference to partners that meet the following requirements: proposals for turnkey solutions, including development and financing; proposals fit for purpose and strategically complementary to PetroSA’s business; proposals that are immediately implementable; and the interested parties must be credible and have sufficient financial resources of their own to carry out the projects.
Once the evaluation process is complete, PetroSA will designate a preferred partner or partners and enter into formal development agreements.
Petro SA has scheduled a scope clarification meeting for 12:00 on February 14, on Microsoft Teams, and interested parties are encouraged to confirm confirmation of this meeting by February 13.
For more information related to the request for proposal, please see the attached documents.
