South Africa: TotalEnergies and QatarEnergy withdraw from offshore oil blocks

TotalEnergies, one of the world's largest oil and gas companies, recently announced its withdrawal from two oil and gas blocks offshore South Africa. This decision was followed by its partner QatarEnergy, which also declared its withdrawal from one of the blocks concerned.

TotalEnergies had initially committed to Block 11B/12B in 2013, making two major gas discoveries there, Brulpadda and Luiperd. However, despite these promising discoveries, the economic and technical challenges associated with developing and monetizing these resources led the company to reassess its position.

TotalEnergies' withdrawal from Block 11B/12B follows the decision of its partner CNRI to also withdraw, relinquishing its 20% interest. TotalEnergies EP South Africa, a subsidiary of TotalEnergies, holds a 45% interest in the block. In addition, QatarEnergy has informed the other partners of its intention to withdraw its 25% interest in the same block.

Despite these withdrawals, Africa Energy Corp, which holds a 10% interest in Block 11B/12B, expressed confidence in the commercial viability of the block's resources, saying they can still be developed despite the current challenges.

In addition to withdrawing from Block 11B/12B, TotalEnergies has also decided to withdraw from offshore exploration Block 5/6/7, in which its subsidiary TotalEnergies EP South Africa holds a 40% interest.

The Brulpadda and Luiperd discoveries represent the largest natural gas discoveries in South Africa. If developed, these resources could make a significant contribution to meeting the country's energy needs as it seeks to reduce its dependence on coal-fired power stations.

Block 11B/12B is located in the Outeniqua Basin, around 175 kilometers off the south coast of South Africa. It covers an area of 19,000 square kilometers, with water depths ranging from 200 to 1,800 meters. The block has considerable energy potential, but the challenges of exploiting it remain significant.

The withdrawal of the joint venture partners from Block 11B/12B is subject to the approval of the South African regulatory authorities. This process is crucial to ensure that all legal and environmental obligations are met.

The withdrawal of TotalEnergies and QatarEnergy from blocks 11B/12B and 5/6/7 offshore South Africa marks a turning point in oil and gas exploration in the region. While these decisions are driven by economic and technical challenges, they leave the door open for other companies to explore and potentially develop these crucial energy resources. Africa Energy Corp remains optimistic about the potential of these blocks, underlining the continued importance of these resources to South Africa's energy future.