First gas, now it’s oil company wants

Changing their tune: The site of the Sungu Sungu methane gas drilling project outside Dannhauser in KwaZulu-Natal.

Changing their tune: The site of the Sungu Sungu methane gas drilling project outside Dannhauser in KwaZulu-Natal.

Published Jul 10, 2015

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Durban - The exploration company that lodged an application to search for gas in KwaZulu-Natal – which could involve fracking – has changed its story and asserted that it is now looking for crude oil, not gas.

Last month environmental consultants acting for the Gauteng-based Sungu Sungu Gas company submitted an official application to the government to explore for coal bed methane (CBM) gas next to the town of Dannhauser in KZN.

CBM involves sucking large volumes of water from underground, and can often involve fracking (artificial fracturing of underground rock formations by the injection of toxic chemicals, water and sand).

Both technologies carry significant risks of surface and groundwater pollution.

On Monday, soon after The Mercury published details of the proposed CBM exploration venture, Sungu Sungu stated that it was looking for oil – not gas.

This statement contradicts the information submitted to the government and the public in official documents last month as part of the environmental authorisation process and has come as a surprise to civil society groups.

Midlands Conservancies Forum spokeswoman Judy Bell said she was “gobsmacked” by Sungu Sungu’s latest statement, while environmental justice watchdog Bobby Peek said the latest developments seemed farcical, “more like a Monty Python script”.

Responding to queries from The Mercury this week, Sungu Sungu spokesperson Solomon Lephoto said the company was searching for conventional oil reserves at Dannhauser, on the basis of previous exploration by the Council for Geoscience and Soekor (the former State oil exploration company).

Lephoto said oil had been discovered previously at depths of between 120m and 150m.

“So the intention of exploration is to validate this historical work done in the area.”

Lephoto also denied that Sungu Sungu would inject any chemicals, water or sand into its exploratory wells.

“We will use conventional drilling methods … It is not CBM but convention resource (sic).”

Hydrocarbons

Asked whether the company or its environmental consultants had circulated inaccurate or misleading information to the government and the public in an official exploration permit application, Lephoto did not respond, simply stating: “At this stage and with available information, we do not envisage any fracking as per your last article.”

He added that hydrocarbons (oil, gas and condensate) were often discovered together.

The environmental consultant acting on behalf of Sungu Sungu said yesterday she now understood that the company planned to search for both oil and gas.

“I spoke to Solomon and we will amend the final scoping report to reflect that we will be looking at both oil and gas,” said Jomela Consulting spokeswoman Yvonne Gutoona.

Responding, the Midlands Conservancies Forum said the Sungu Sungu proposal was becoming “more disturbing by the day”.

“The public has been asked to participate in a process that seems to be all smoke and mirrors. Jomela consultancy states in the official scoping report that the company will be exploring for coal bed methane gas, but according to the answers given to The Mercury by Sungu Sungu, they will be drilling for oil!”

In this case, it appeared that Sungu Sungu had not shared information on the basis of honesty and transparency, making it difficult for civil society to exercise rights to participate meaningfully.

 

Bobby Peek, director of the Pietermaritzburg environmental justice group groundWork, said Jomela and Sungu Sungu had a duty to inform the public accurately and to avoid confusion.

While the environmental consultants might appear confused, the gas company should also accept blame and be required to check whatever was printed on its behalf.

The Treasure the Karoo Action Group, a watchdog organisation set up to monitor the impacts of shale gas fracking, said: “We found aspects of Sungu Sungu’s scoping report and subsequent comments contradictory.

“The scoping report clearly stated that the application was for coal bed methane exploration and not oil. The scoping report was also inadequate and vague on several points.

“Two important lessons that many of the prospective shale gas drillers may have learnt in South Africa are that civil society is not to be underestimated and that honesty and openness are paramount in gaining public trust.”

The Mercury

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