In March 2000, an offshore Natural Gas discovery was made in the Ibhubezi field in Block 2A. US-based companies Forest Oil Corporation (Forest) and Anschutz, along with BEE Company Mvelaphanda, are exploring in Block 2A, which has estimated reserves of 15 Tcf. In August 2003, PetroSA purchased a 30 percent share in the Ibhubezi Gas Field project. PetroSA hopes that Ibhubezi gas, along with gas from Namibia and Mozambique, can be used at its 45,000 bbl/d Mossel Bay GTL plant, where reserves may be depleted by 2007.
In January 2002, Petroleum Geo-Services (PGS) and Petroleum Agency SA (PASA) announced a joint cooperation agreement to promote deepwater exploration acreage in Block 2B and acreage west of Blocks 5 and 6. In December 2002, a consortium of Jebco Seismic, PetroSA, and Global Exploration Services identified a petroleum system off the east coast of South Africa in the Tugela Cone.
Although Shell withdrew from the project in August 2002, negotiations continue between the South African government and operators of Namibias offshore Kudu gas field (1.3 Tcf). ChevronTexaco replaced Shell, but withdrew from the project in November 2003. Although Energy Africa assumed full interest in the project and planned to pursue its development unilaterally, it did not have adequate funding to do so and sold a 10 percent stake to Namcor, the Namibian national oil company (NOC). Initial plans call for gas to be piped from the Kudu field to Cape Town, where it will supply fuel for a power station. PetroSA has expressed interest in becoming a partner on the Kudu field, and the government wants to extend the Pipeline to the PetroSA synfuel facilities at Mossel Bay.
The South African government has provided $213 million to fund exploration in fields off Mossel Bay. Any recoverable natural gas reserves will be developed with the intent of extending the lifespan of the Mossel Bay GTL project.