International petroleum group Shell could spend up to R1.4-billion exploring the Karoo for shale gas lodes.
This is according to Shell South Africa chairman Bonang Mohale, speaking after a public participation meeting on Friday at which the exploitation of shale gas deposits in the Karoo was discussed.
''Ordinarily, Shell spends up to $15-million (about R105-million) per well. The costs are very variable because it depends on how deep the well is and how much water has to be used, " Mohale said.
Shell has applied for a licence to explore for shale gas in the ecologically sensitive Karoo.
The exploration involves hydraulic fracturing or ''fracking", in which water and sand are pumped into the ground under pressure to fracture shale and force out the gas contained in it.
Though exploiting such a resource would go some way towards securing the country's energy supplies, it can lead to pollution of underground water systems and might affect land use for years.
Mohale said that Shell expects the Petroleum Agency of SA to give it either a ''yes or no" in August, within the 120 days Shell has been given to prepare its case for exploitation in terms of the law.
This includes holding more public meetings and completing an environmental management plan. - I-Net Bridge