South Africa imports seven per cent less oil per day since the Sable oilfield, off the southern coast, went into production. Will this resource help make fuel cheaper in SA?
South Africa imports seven per cent less oil per day since the Sable oilfield, off the southern coast, went into production.
Together with production from the Oribi and the Oryx oil- fields, this means the state-owned Petroleum Oil and Gas Corporation (PetroSA) has cut its daily 370 000 barrels-a-day oil imports by 17 per cent.
PetroSA chief executive Mpumelelo Tshume said on Monday the oil coming from the Sable field was part of South Africa's goal to be more self-sufficient in its fuel needs.
Tshume said the Sable field made a significant contribution to ensuring the stability of the country's crude oil supply. He said South Africa had made good progress in achieving this aim, pointing out that six years ago it was importing all its oil requirements.
Sable was expected to produce between 20 and 25 million barrels of oil over the next three years.
However, Minerals and Energy Minister Phumzile Mlambo-Ngcuka said the oil coming from the local fields would not result in lower fuel prices, because the pricing formula used was based on international oil prices.
However, Mlambo-Ngcuka was hopeful that production at the Sable field would encourage further oil exploration off South Africa's coast. Sable has the potential to supply oil for five to six years.
Original article from Car