TotalEnergies has announced its withdrawal from two offshore oil and gas blocks in South Africa. This decision follows the exit of its partner, QatarEnergy, from one of the blocks.
TotalEnergies and QatarEnergy are both withdrawing from Block 11B/12B, off South Africa’s southern coast. TotalEnergies EP South Africa held a 45% interest in this block, while QatarEnergy held a 25% interest. CNRI, another partner, had previously decided to withdraw its 20% stake from the same block.
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TotalEnergies entered Block 11B/12B in 2013, making two gas discoveries, Brulpadda and Luiperd. However, these discoveries proved too challenging to economically develop and monetize for the South African market.
TotalEnergies also decided to exit offshore exploration Block 5/6/7, where it holds a 40% interest.
Africa Energy Corp, which holds a 10% interest in Block 11B/12B, stated it does not intend to withdraw. Despite challenges, the company remains confident in the commercial potential of the block’s resources.
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Block 11B/12B, located in the Outeniqua Basin, covers 19,000 square kilometers with water depths ranging from 200 to 1,800 meters. The Brulpadda and Luiperd discoveries are the largest natural gas finds in South Africa and could significantly contribute to the country’s energy needs.
The withdrawal of the joint venture partners from Block 11B/12B is subject to regulatory approval by South African authorities.
