TotalEnergies and QatarEnergy Exit Offshore Blocks in South Africa
July 29, 2024
TotalEnergies has decided to withdraw from two oil and gas blocks offshore South Africa, with its partner in one of the blocks QatarEnergy also announcing its exit from the development.
Following the decision of the partner CNRI to withdraw its 20% stake from Block 11B/12B, TotalEnergies also announced its withdrawal from this block, off the southern coast of South Africa, in which its affiliate TotalEnergies EP South Africa holds a 45% interest.
TotalEnergies entered into Block 11B/12B in 2013 and made two gas discoveries, Brulpadda and Luiperd, which could however not be turned into a commercial development as it appeared to be too challenging to economically develop and monetize these gas discoveries for the South African market.
TotalEnergies has also decided to exit from offshore exploration Block 5/6/7 where TotalEnergies EP South Africa currently holds a 40% interest.
QatarEnergy also provided notice to the joint venture partners that it will withdraw its 25% interest in the Block 11B/12B.
Africa Energy Corp currently holds a 10% interest in Block 11B/12B, and according to the company, it does not intend to withdraw.
Despite the challenges and delays encountered so far, Africa Energy Corp said it remains confident that the Block 11B/12B resources can be commercially developed.
The Block 11B/12B is located in the Outeniqua Basin, around 175 kilometers off the southern coast of South Africa, and covers an area of 19,000 square kilometers with water depths ranging from 200 to 1,800 meters.
The Brulpadda and Luiperd discoveries are the largest discoveries of natural gas resources in South Africa and if developed could supply a significant portion of the country’s energy needs as it seeks to transition away from coal fired power plants.
The withdrawal of the joint venture partners from Block 11B/12B is subject to all relevant regulatory approvals by South African authorities.
