Oil giant Shell will not be exempt from the moratorium on applications for shale gas exploration in the Karoo, according to the Department of Mineral Resources (DMR).
Fracking in the Karoo could affect SA's bid to host the Square Kilometre Array (SKA) telescope.
Due to several reasons, including the amount of water needed for the process, Cabinet invoked a moratorium on proposed licences for fracking.
The Government Communication and Information System (GCIS) said the DMR will lead a multidisciplinary team, including the departments of trade and industry and science and technology, among others, to fully research all the implications of the proposed fracking.
However, questions still remained around which applications were actually affected by the moratorium.
No exceptions
Luke Havemann, director at Havemann Inc, a firm specialising in energy matters, referred to statements by DMR media liaison Bheki Khumalo saying the moratorium only applies to new licence applications - possibly meaning those already put forward by Shell, Falcon Oil and Gas, and Bundu still stand.
Khumalo told ITWeb the Cabinet statement says the moratorium is on “new prospecting applications. The law is very clear. It says if someone like Shell submits an EMP [environmental management plan] to the department, it has 120 days to consider it and the minister is not at that point yet with Shell's EMP.”
However, mineral resources minister Susan Shabangu now says the department will neither accept new applications nor finalise existing applications until the department's feasibility study is finalised.
“Given the intensity and scale of the issue and the fact that this (shale gas exploration) has never been done before on our shores, my department will conduct a comprehensive study which will assist us to formulate our approach after which we will go back to Cabinet.”
The department adds that it is contemplating sending a team of experts to other jurisdictions to draw lessons with regard to this issue.
SKA question
The proposed fracking was put forward by oil company Shell to explore for gas in an area of more than 90 000 square kilometres, in the South Western Karoo Basin.
Since this is where the SKA would be hosted, should SA win the bid, such exploration could threaten SA's bid to host the mega telescope.
Val Munsami, deputy director-general for research development and innovation at the Department of Science and Technology, previously said the shale gas initiative leaves a big question around the SKA.
“In terms of international lobbying strategies, it's starting to creep in. The international partners are asking questions about where this is going and how it will impact the SKA.”
Xhead = Mega scope
SA is bidding against Australia to host the SKA.
The final decision regarding the successful host country for the SKA telescope is expected in 2012, with work due to start in 2013. Operations will start in 2015, provided a significant portion of the array has been commissioned.
The SKA is a mega telescope, about 100 times more sensitive than the biggest existing radio telescope.
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