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TotalEnergies is planning to exit its gas-condensate finds off the South African coast, reported Bloomberg, citing sources familiar with the matter.
Instead, the French oil and gas major plans to focus on exploration opportunities closer to Namibia.
In 2019, TotalEnergies made a discovery at the Brulpadda field, braving one of the world’s fastest ocean currents and investing at least $400m (€371.94m).
The discovery is estimated to hold around one billion barrels of light liquid hydrocarbon equivalent.
A subsequent discovery at the Luiperd well in the following year also showed promise, but neither has progressed towards development.
The decision to relinquish the Block 11B/12B licence comes amid doubts over the commercial viability of these complex deep-water finds, considering South Africa’s relatively small gas market, the sources said.
TotalEnergies is instead setting its sights on the Orange Basin, where it has recently increased its stake and where promising oil discoveries have been made in nearby Namibian waters.
In March, the company expanded its presence in the region by acquiring a stake in the 3B/4B offshore block within the South African part of the Orange basin.
TotalEnergies is concurrently developing a first oil project in Namibian waters.
A representative for TotalEnergies declined to comment on these developments, Bloomberg said.
An exit from the South African discoveries would impact the country’s energy sector, which is currently reliant on coal and imports.
The potential production from these fields was part of the strategy to transition to cleaner energy sources and to provide feedstock for PetroSA’s gas-to-liquids plant, which is already facing depleting sources.
Africa Energy, a partner in the offshore 11B/12B blocks, has been informed that TotalEnergies’ local unit is reassessing its involvement in the finds.
CNR International (South Africa) has also announced its withdrawal from a 20% interest in Block 11B/12B.
Africa Energy, holding a 10% stake, has confirmed its commitment to the block.
Questions directed to the Petroleum Agency South Africa regarding this matter have been referred back to TotalEnergies, the report said.
