SA's gas, oil sector yet to realise potential

Total has made a significant natural gas discovery off the southern Cape coast. Courtesy #DStv403

JOHANNESBURG - Oil and gas exploration in South Africa dates back more than a century but the sector is yet to realise its full potential.

Experts believe vast quantities of gas and oil reserves remain untapped.

About 300 wells have been drilled offshore since the late 1980s but the sector has remained subdued due to lower oil prices.

READ: Total on the hunt for oil in Mossel Bay

Political uncertainty in South Africa's resource development sector since mid-2014 hasn't helped either.

Lower operating costs and rising oil prices in the last year, however, have drawn some companies back into the region.

Source
eNCA