Oil and gas major Royal Dutch Shell may spend up to R1.4 billion (approx. €145 million) on exploration in the Karoo region of South Africa, according to a report in Johannesburg’s I-Net Bridge.
Shell has asked the Petroleum Agency of South Africa for permission to explore around 90,000 square kilometres predominantly in the western area of the Karoo Basin.
The Netherlands-based company would use a controversial process called hydraulic fracturing, or fracking, during exploration. This involves the pumping of water and sand into a well, enabling the gas inside the soft rock to flow freely. However, the method can lead to contamination of the underground water system, affecting future land use, and is therefore highly controversial.
Shell South Africa chairman Bunong Mohale told I-Net Bridge he expects a decision on the exploration permit from the Petroleum Agency of South Africa in August.
Mohale attended a public participation meeting last Friday, held to discuss the exploitation of gas deposits in the Karoo region.
The Karoo Basin formation covers almost two-thirds of South Africa, in the centre and south of the country. Shell was awarded a permit to study the potential of the area in late 2009.
