- South Africa’s Energy Minister, Kgosientsho Ramokgopa, has urged more government support and collaboration with international energy firms to develop offshore oil and gas resources.
- TotalEnergies has withdrawn from Block 11B/12B due to challenges in commercialising gas discoveries while continuing exploration in the Orange Basin with QatarEnergy.
South Africa’s Energy Minister, Kgosientsho Ramokgopa, has called for better government support and collaboration with major international energy companies to develop offshore oil and gas resources.
In an interview with the Financial Times published on September 3, Ramokgopa emphasised the need for South Africa to enhance its engagement with global energy giants, such as Shell and TotalEnergies, which have made several significant discoveries off the country’s southern and western coasts in recent years.
Despite these promising discoveries, South Africa challenges leveraging its offshore resources. TotalEnergies, a significant player in the sector, recently announced its decision to withdraw from Block 11B/12B, which includes one of South Africa’s largest natural gas finds. The block, located off the southern coast of South Africa, had been a focus of significant interest since TotalEnergies entered it in 2013 and discovered two major gas fields, Brulpadda and Luiperd.
However, difficulties in commercialising and monetising the gas discoveries influenced the French multinational’s decision to exit the block. TotalEnergies cited economic challenges as a critical factor, noting that the development and monetisation of these resources proved too complex and costly. Industry sources suggest that part of the issue was South Africa’s state oil and gas firm, PetroSA, which reportedly did not agree to a deal to purchase gas from the project.
In response, Minister Ramokgopa acknowledged that South Africa could have done more to facilitate the commercial development of the gas reserves. “Domestic gas is far cheaper than imported gas, so we need to do more to work with players who can help us exploit these reserves,” Ramokgopa stated. He stressed the importance of maximising the value of domestic resources to address the country’s ongoing energy crisis, characterised by frequent rolling blackouts that have severely impacted the economy.
Despite TotalEnergies’ withdrawal from Block 11B/12B, the company remains committed to South Africa’s offshore exploration. Earlier this year, TotalEnergies, in partnership with QatarEnergy, expanded its exploration efforts in the Orange Basin, which spans South Africa and Namibia. The companies secured a new license in South African waters, continuing their investment in the region’s potential.
South Africa’s energy crisis underscores the urgency of developing domestic resources. State-owned utility Eskom has struggled to increase generation capacity to meet rising demand, highlighting the critical need for reliable, cost-effective energy solutions.