Falcon Oil and Gas Ltd.

By Eoin O'Cinneide & news reports

10 March 2014 16:21 GMT

South African petrochemicals giant Sasol is eyeing some of Shell’s shale gas acreage in the country’s Karoo basin, according to a report.

The company is interested in farming in to the Anglo-Dutch supermajor’s patch where it is awaiting governmental approval for an exploration licence.

"We are really interested in what is going in the Shell block and would love to farm in or take a piece of it,” Reuters quoted Sasol chief executive David Constable as saying on Monday.

“Shell is issuing profit warnings and pulling back capex right now.”

Constable continued of Sasol’s shale gas play in Canada: "I am very excited because of the technologies we can bring to the table. We've got shale gas upstream experience in British Columbia.

"We want to get involved and participate and monetise that gas in (Canada) with gas to liquid, gas to power, gas to chemicals.”

Sasol is in a joint venture with Talisman Energy in the Farrell Creek area of the tight shale gas Montney basin play in western Canada.

Shell is waiting to hear if it can go ahead with shale gas exploration in the Karoo. The ban on shale gas exploration was lifted and endorsed by the South African Cabinet in September 2012.

A report commissioned by the supermajor showed that a gas resource of about 20 trillion cubic feet could result in an average, annual government revenue boost of 35 billion South African rand ($3.1 billion) and generate 300,000 permanent jobs over 25 years.