South African Government Wants to Drill for Shale Gas Itself

South Africa’s Mineral Resources Minister Ngoako Ramatlhodi said on Tuesday that the state is looking to drill for shale gas itself, reports Independent Online, a local news website.

“We should ensure that, should at some point the state want to walk into the shale gas arena on its own, it should be possible for the state to do so, side by side with the private sector,” Ramatlhodi said at a briefing prior to his budget vote speech.

The minister added that it was critical that the state should not over-extend itself in capital terms in agreements with private sector players, adds Independent Online.

“We should not over-commit ourselves in terms of capacity, money,” the website quotes the minster as saying.

Ramatlhodi said shale gas exploration regulations were “drafted and ready”, but declined to give a date when they would be made public.

In his budget speech, he defined shale gas and off-shore oil and gas exploration as game changers in the country's resource development history, reports Independent Online.

“If stewarded properly, (it) has the potential to drive the development of our economy for all our people in a manner contrary to a historic injustice inflicted upon our people by the mining industry.”

The South African government has introduced a bill that gives the state 20 percent in new gas and oil exploration and production ventures, with the option to increase that at an agreed price.