Norwegian Oil For Development In South Africa

6.12 S outh A fri c a Project:

The South African Petroleum Sector Policy and Capacity Building Project

Country facts: Official Name: Republic of South Africa

Cooperating institution: Department of Minerals and Energy (DME) Petroleum Agency South Africa (PASA) A business plan was developed between DME’s Hydrocarbon and Energy Planning Chief Directorates (HEPCD) and Norwegian Water and Energy Directorate (NVE) in 2006. NPD, Petroleum Safety Authority (PSA) and PETRAD will assist NVE in implementing the business plan. The PASA/NPD business plan is still under discussion. DME Objectives: To develop a dynamic and perpetual integrated energy plan and associated human capacity which will, amongst other more general energy imperatives, promote reliable and consistent supply of liquid fuels to consumers. Project period: 2006 - 2009 Total budget: 6.4 mill NOK (HEPCD business plan) DME Programme The areas for cooperation and assistance: • Legislative operationalisation • Integration of current energy sector plans • Implementation of integrated energy planning in South Africa • Capacity building Contact DME: Mark Beare, RSA 3001 Programme Manager [email protected] PASA: Mthozami Xiphu, Chief Executive, [email protected] NVE: Kjell Repp, Project Coordinator, [email protected] NPD: Øystein Kristiansen, Project Director, [email protected]

Capital: Pretoria (Cape Town is the legislative centre and Bloemfontein the judicial centre) Chief of state: President Thabo Mbeki (since 16 June 1999); The president is both the chief of state and head of government Population: 44 187 637 (2006) Petroleum sector, key figures: Average oil production: 28 000 bbl/day (2005) Annual gas production: 2.0 bill m3 (2005) Organisation of the sector: Ministry: Minerals and Energy Department: Minerals and Energy (DME) Central Energy Fund (CEF) The state holding company for:

• Petroleum Agency South Africa - the upstream regulator

• PetroSA

Cooperating institutions in Norway NORAD NVE PSA Petrad

- the state oil company

• iGas - the state company for natural gas

• Energy Development

Brief history of the project The present project is a continuation of energy cooperation between RSA and Norway that was initiated in 1996. The full 2006 - 2009 programme is estimated to cost NOK 35 mill. Part of the programme is specifically focused on general energy issues which in Norway are handled by NVE. This part is not included in this report. The last component of the programme, the PASA business plan, will focus on upstream hydrocarbon issues. We expect this component to be ready for 2 0 0 6 -2 0 07 implementation during second half 2007. Norwegian Petroleum Directorate O i l f o r d e v e l op m e n t

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Corporation - state company for renewables Regional Mining Offices (H&S)

6.12 Activities in 2006 Some capacity was used in 2006 to support PASA in the planning of their sub Business Plan under the South African Energy Sector Policy and Capacity Development Programme. This part of the programme is delayed compared to original plans. The PASA CEO, three managers and a representative from DME visited NPD from March 20 - 24 for discussions of issues regarding upstream petroleum governance, and whether Norwegian experience can be of relevance to South Africa. A delegation from DME visited Norway from December 4 - 8 for an energy regulation workshop. The workshop was designed by NVE, NPD, PSA and Petrad. MPE, Statoil, Gassco and Gasnor also contributed to a very comprehensive and interesting programme.

Plans 2007

sector programme covering electricity, renewable energy and petroleum. NPD will continue to support the final planning of the PASA sub business plan. The possible areas for NPD support to PASA: Transfer of relevant expertise to PASA Assistance to PASA in mapping areas of work where more capacity and competence are needed (possible assistance from PETRAD) • Training assistance, particularly regarding geological interpretation, resource assessment and the development of a resource inventory • Possible support regarding development of regulations and supervisory methodology • Possible support regarding data management • Continued support regarding the delineation of the continental shelf In addition NPD will assist NVE in their implementation of the Business Plan with programme DME /HEPCD.

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We expect that all parts of the new programme will start up during 2007, making this programme a total energy

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Photo: Jan Stenløkk

2 0 0 6 -2 0 07 Norwegian Petroleum Directorate O i l f o r d e v e l op m e n t

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