S.Africa imposes "fracking" moratorium in Karoo

[tabatha]

Thu Apr 21, 2011 3:42pm GMT

By Ruona Agbroko

JOHANNESBURG (Reuters) - South Africa's cabinet placed a moratorium on Thursday on oil and gas exploration licenses in the semi-arid Karoo region, where the controversial shale extraction technique of "fracking" might be deployed.

The Karoo is a vast and ecologically sensitive region that is high on the radar screen of conservationists.

"Cabinet has endorsed the decision by the department of minerals to invoke a moratorium on licenses in the Karoo, where fracking is proposed," the government said in a statement.

Petrochemical group Sasol (SOLJ.J), Anglo American (AAL.L) and Falcon Oil and Gas (FO.V) are among those eyeing shale gas in the region. Royal Dutch Shell (RDSa.L) is leading the pack with exploration rights to 90,000 sq km (34,750 sq miles).

"We have noted the South African cabinet's endorsement of the decision of the department of minerals, and we will seek clarity from the department on the full implications," a Shell spokesperson told Reuters.

http://af.reuters.com/article/topNews/idAFJOE73K0LV20110421