TotalEnergies quits SA gas discoveries

TotalEnergies has confirmed it will exit its major gas discoveries off the coast of SA because it is ‘too challenging’ to develop and monetise the finds for the country. Fin24 reports that in a press release issued last week, the French multinational oil and gas giant announced it would withdraw from block 11B/12B off the coast of Mossel Bay, in which it 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 monetise these gas discoveries for the SA market,’ the company said. The news comes amid few weeks of mounting speculation that TotalEnergies would exit block 11B/12B after another stakeholder, Canadian Natural Resources International (CNRI), with a 20% stake in the block, announced its plans to exit. In terms of the Joint Operating Agreement, the other stakeholders had 30 days to also indicate if they intend to exit. QatarEnergy International, which holds a 25% interest, has also now provided notice of its exit. That leaves just the Toronto-listed Africa Energy Corp, which holds 10% through Main Street 1549, and which has confirmed its intention to remain invested in the block. TotalEnergies said it has also decided to withdraw from Block 5/6/7 offshore of Cape Town where its SA subsidiary holds a 40% interest. Insiders previously told News24 that TotalEnergies has grown deeply unhappy over the lack of support from the SA Government for the Brulpadda and Luiperd discoveries. The inability to secure an offtake agreement with the state-owned PetroSA had also been discouraging.