A Genesis for Oil and Gas Exploration Dialogues

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CAPE TOWN - 6 OCTOBER 2023 - During the SAIMI Roundtable discussion on Oil and Gas Exploration hosted at the Mariott Crystal Towers Hotel in Century City, Cape Town. Photo: Matthew JOrdaan / SAIMI

A Genesis for Oil and Gas Exploration Dialogues

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The South African International Maritime Institution (SAIMI) undertook the mammoth task of beginning a conversation between a multitude of role players at its Oil and Gas Exploration Roundtable in Cape Town.

“The primary objective of this dialogue is to collect people with a diverse set of interests and engage them in a serious dialogue about the beliefs they hold dear and speak about them,” CEO of SAIMI Odwa Mtati explained.

“It is important that, as a country, we have these difficult conversations. We have to gather, discuss the issues, agree where we can disagree at certain points, and reach out to each other. The most important aspect to remember is that the world is moving, and we must have these serious conversations and move with it.”

This SAIMI-facilitated discussion included major role players from the government, private and public sectors, various industries, and concerned communities. “We are trying to ensure that there is a wide variety of voices on this topic,” Mr Mtati continued.

Speakers and role players included representatives from Standard Bank, The Offshore Petroleum Association of South Africa (OPASA), the United Nations Environment Programme, the South African government Department of Mineral Resources and Energy, the Presidential Climate Commission, various researchers and academics, and representatives from the commercial and small-scale fishing industries, among many others.

Delegates attending the SAIMI Oil and Gas Exploration round table in discussion during one of the brainstorming sessions.

Together, and often with conflicting viewpoints, they began to unpack the topics of oil and gas exploration, alternative energy sources, the environmental and economic impacts, and the impact of exploration and production on communities. In the true South African spirit, differences could be laid aside to find a way forward together.

Shamira Daniels of FishSA said she felt more optimistic by the end of the discussion than at the beginning. Most importantly, she noted the spirit of collaboration among the participants. She said, “The exciting part for me is that all parties have room for collaboration and engagement. Everyone is willing to come to the table and find a middle ground. As South Africans, we want to find the best for the country. So, as a citizen, it warms my heart that we have these levels of engagement across the sectors.”

Mtati explained that “the difficulty is that information is often found in pockets. Some people are interested in protecting the environment and communities, and some are interested in oil and gas exploration. They will both have information that suits their purposes. So what is important is the ability to disseminate this information among the respective parties, listen to the viewpoints, and find where we can reach agreement to move forward together.”

Dr Allison Futter of OPASA was one of the speakers who believed that the exploration of gas and oil would benefit South Africa and its economy.

“There is a huge hydrocarbon potential in South Africa that should be unlocked,” Dr Futter explained. “It could be a solution to our load-shedding woes, and it is the solution in terms of the current import of refined and crude products because we do not have indigenous productions.”

She believes it will allow South Africa to grow the economy and improve the GDP while being energy secure. Dr Futter also believes that there will be other benefits too. “There are a lot of spinoffs, such as employment and skills development, and that which is gained fiscally can be employed in new sectors of what will come after the extinction of our current hydrocarbons.”

“My hope,” Dr Futter continued, “from a roundtable such as this is that there will be buy-in and a clear understanding that gas is a transition fuel towards a clean environment and meeting our future demands for future generations.”

UNEP’s Dr Brian Mubiwe sees the benefit of participating in finding common ground. “It is about trying to find each other – environmentalists, industry players, the government, and the communities. The consensus is that we want development and sustainability. But how do we do that, and at what pace do we do it? Discussions like this help us to find answers.”

“The benefit of such discussions and engagements is to bring different colleagues with different views around the table to find consensus around the best pathways to a future we all want. An environmentally sustainable future where the economies are growing, but also a future with food, water, and social security. A future where we don’t grapple with climate-induced disasters. We hope these issues can be resolved in a forum like this.”

These discussions are exactly what Mtati desired from the roundtable. “We want people to engage in serious discussion and find common ground by listening to each other. This is so we don’t have to premise engagements on conflicts but find solutions that move the country forward.”

In a country gripped by debt and unemployment like South Africa, Auyile Xabadiya of the Department of Mineral Resource and Energy believes oil and gas exploration offers the country a much-needed lifeline.

Xabadiya explained, “Offshore Oil and Gas exploration is so important for us as a country because we have a high debt to GDP. If everyone agrees and we can move forward with these projects, we stand a good chance of benefitting the fiscus to service our debt and have more funds to benefit the infrastructure projects in this country.”

Similarly to how Dr Futter views gas as a “transitional fuel”, Xabadiya sees the industry as an economic catalyst that will provide debt relief and create more employment opportunities as the profits are invested into other areas of the economy.

“Once we have this industry as a catalyst, it will inject money into the economy that is not there. Oil and gas are finite resources, but the profits can be placed in a well-governed fund that can be spread out in the economy. A welfare state is not good for South Africa, and we need a functional state with industries where everyone can work to move the country forward,” Xabadiya said.

Shamira Daniels hopes that more of these conversations will continue. She reflected that “more people and role players need to be invited into a forum like this so that they can have their say.” Daniels, who fights for the rights of the fishing communities along the West Coast, was pleased to hear of the investors, SAIMI, and PCC’s willingness to conduct further research.

“The willingness of the oil and gas industries to engage and do research is such a big step,” Daniels beamed. “This is a huge stride if we can start doing socio-economic and environmental research. There is global research, but there is no South African research on this – especially into the communities.”

Mtati closed the session with a declaration of appreciation for all who attended and, ultimately, those who will attend future discussions on this topic. Mtati believes that “this is not the end but the genesis of a process we will lead to allow parties to come to a common understanding. Our role is to mediate and help drive parties towards a common goal.”

Words and Photos: Matthew Jordaan

This article was commissioned by The South African International Maritime Institution (SAIMI)