TotalEnergies withdrew from two offshore gas fields in South Africa

2024-07-29 09:26:51

French oil giant TotalEnergies announced on Monday that it is withdrawing from two gas fields located outside South Africa, citing “difficulties encountered in developing and holding” two gas discoveries made there “on the South African market Africa”.

“Following the decision of the partner CNRI to withdraw from Block 11B / 12B, TotalEnergies also announces the withdrawal from this deposit located in the southern part of South Africa,” the company said in a statement on Monday.

Block 11B/12B covers an area of ​​19,000 km2, with water depths between 200 and 1,800 meters. TotalEnergies holds a 45% share through its subsidiary TotalEnergies EP South Africa, alongside Qatar Petroleum (25%), CNR International (20%) and South African Consortium Main Street 1549 (10%).

Since entering the block in 2013, there have been two major gas discoveries there: one in Brulpadda and one in Luiperd, both located in the Outeniqua basin, 175 kilometers off the coast of South Africa.

However, these two discoveries “could not be converted into commercial development due to the difficulties encountered in the development and promotion of these gas discoveries on the South African market”, regrets TotalEnergies.

The project to exploit the Brulpadda gas field caused the anger of environmental NGOs in October 2022. The Bloom Group and the South African NGO Green Connection have seriously attacked “drilling operations in South African deep waters” it is possible to threaten ” small fishers and amazing biodiversity”.

CNR International (20%) has already announced in early July that it is withdrawing from the 11B/12B field. In addition to TotalEnergies, Qatar Petroleum (25%) also announced its withdrawal on Monday, according to a press release from Africa Energy Corp, a Canadian oil company that owns part of Main Street 1549.

Under the agreement linked to the four partners, “parties that withdraw transfer their participation free of charge to each of the partners that do not withdraw”, specified Africa Energy corp, which has no “decision to withdraw” and should take finally a 100% interest in Block 11B / 12B”.

Also, “TotalEnergies has also decided to withdraw from the offshore research area 5 / 6 / 7, in which TotalEnergies EP South Africa retains 40%,” the company added on Monday.

In addition to these two blocks, TotalEnergies is working on four other deep exploration permits in South Africa, including one “recently” awarded block 3B/4B.