Sunbird Energy Signs Gas Supply Agreement With Eskom

Sunbird Energy has signed a Memorandum of Understanding (MoU) with the South African state owned power utility Eskom to jointly investigate gas supply from the offshore Ibhubesi gas project.

Under the MoU, Sunbird and Eskom have agreed to jointly investigate the economic and commercial viability of the development of the Ibhubesi gas field in the 5,000 km2 Production Right Block 2A, located off the west coast of South Africa.

Sunbird will undertake the following activities to investigate indigenous gas sales from the Ibhubesi Gas Project to Eskom’s Ankerlig Power Station: complete the field development and the Front End Engineering and Design (FEED) for the project.

Eskom will undertake the following activities to investigate indigenous gas sales from the Ibhubesi Gas Project to Eskom’s Ankerlig Power Station: complete the necessary studies to determine the work required, including the governance process (approvals), for the replacement of the existing diesel feed stock with indigenous natural gas, along with the OCGT conversion project; and determine the procurement process necessary for a formal gas sales agreement to be entered into in respect of the Ibhubesi project.

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