- TotalEnergies is exiting its discoveries of gas condensate off the tip of South Africa.
- The news from TotalEnergies comes amidst a significant shift in attitude amongst international energy companies and South Africa.
TotalEnergies is exiting its discoveries of gas condensate off the tip of South Africa. Following its partner CNR International’s decision to withdraw from Block 11B/12 B (off the Southern Coast of South Africa), the French energy giant is also withdrawing.
TotalEnergies EP South Africa holds a 45 per cent interest in the block. The French Giant entered Block 11B/12B in 2013 and made two gas discoveries, Brulpadda and Luiperd.
That said, neither could be turned into a commercial development as it appeared too challenging to economically develop and monetise these gas discoveries for the South African market.
TotalEnergies also decided to exit exploration Block 5/6/7 (SouthWest of Cape Town), where TotalEnergies EP South Africa currently holds a 40 per cent interest.
In 2019, Total spent $400 million (R7.3 billion) to find an estimated 1 billion barrels equivalent of light liquid hydrocarbon at the Brulpadda field. The following year, it had more success in the Luiperd field.
Bloomberg previously reported that the company will move on to concentrate on exploring the Orange Basin, which is north on the Atlantic coast of South Africa near promising oil discoveries in Namibian waters
Potential production from Brulpadda and Luiperd was intended to help the country reduce its dependence on coal and provide feedstock for PetroSA’s 45,000-barrel-a-day gas-to-liquids plant, which depends on the depleted fields nearby.
The news from TotalEnergies comes amidst a significant shift in attitude amongst international energy companies and South Africa. Shell recently announced that it would sell its downstream business in South Africa, including its forecourts across the country.
Shell has over 600 forecourts in South Africa and has operated in the retail space for over a century. That said, Shell will still maintain its upstream business and its explorative and extractive activities in the Karoo and off the Wild Coast.
Shell has faced significant opposition to its planned seismic surveys by environmental groups and lost in court.