The grant will fund a sub-surface development plan, covering engineering requirements and complete an environmental impact assessment and commercial analysis.
US-based consultants MHA Petroleum will perform the in-depth FDP work, including studies on reservoir modeling, production forecasts and the design of a production drilling program.
Sunbird Energy said the FDP, together with the engineering designs of the gas processing facilities and export pipeline, will form the basis of the front-end engineering and design (FEED) studies.
This would allow an investment decision to be finalized in the first half of 2015 and start commercial production in late 2017 or early 2018.
Sunbird Energy managing director Will Barker said, "Sunbird is delighted to have secured the U.S. Government’s USTDA support for the advancement of the Ibhubesi Gas Project."
"It is very strong validation of the regional importance of Ibhubesi to the South African energy equation. With Ibhubesi being the largest undeveloped gas field in South Africa, its proven reserves can replace high cost imported diesel and help meet the significant demand for gas fired power generation," Barker added.
US Charge d’Affaires for South Africa Catherine Hill-Herndon said, "This project supports both President Obama’s Climate Action Plan and South Africa’s Integrated Resource Plan 2010, which calls for the expansion of gas-fired power generation from 2% to 11% of the total supply by 2030."
