Pioneer Begins Production at South Coast Gas Project

Pioneer Natural Resources Company started production at the South Coast Gas project in Block 9 offshore South Africa. The production for the five wells is expected to reach about 50 MMcf/d of gas equivalent by the year’s end.

“We’re very pleased that the development phase of the project has been completed in the time expected,” said Pioneer Chairman and CEO Scott Sheffield.

Hydrocarbons produced from the project will supply PetroSA’s gas-to-liquids (GTL) plant onshore in Mossel Bay. Brent oil prices determine the prices Pioneer will receive for both the gas and condensate.

The per day production at the GTL plant should increase considerably in the next 12 to 18 months with the completion of oil production operations at the Sable field (productions extended because of high oil prices). Then, Sable gas production will be tied into the South Coast Gas project, as well.

Pioneer has projected peak production of approximately 100 to 120 MMcf/d of gas and 3,000 b/d of condensate. Twenty to 30 percent of the total South Coast Gas production is expected to be from gas condensate.

An independent exploration and production company based in Texas, Pioneer holds a 45 percent interest in the South Coast Gas project while PetroSA, the South African national oil company, holds 55 percent interest and acts as operator.