French energy giant TotalEnergies announced on Tuesday that it intends to start offshore oil and gas drilling in South Africa as early as next year, subject to obtaining the necessary regulatory approvals. The announcement, made by Mike Sangster, TotalEnergies' senior vice-president for Africa, at an industry conference, marks a key step in the country's energy exploration expansion strategy.
TotalEnergies currently holds exploration rights to four offshore blocks in South African waters, notably in the Outeniqua Basin, where the company has already made significant discoveries, such as the Brulpadda and Luiperd fields, located south-west of Mossel Bay. If these new drilling operations prove successful, they could strengthen the national energy supply, reduce South Africa's dependence on fuel imports and stimulate foreign investment in the sector.
Despite these promising prospects, TotalEnergies has recently faced some major challenges. In July, the company announced that it was withdrawing from Block 11B/12B, off the south coast of the country, due to commercial viability issues. This block is home to South Africa's largest-ever offshore gas discoveries, a significant setback for the country's energy independence ambitions.
Present in South Africa since 1954, TotalEnergies operates across the entire oil and gas value chain. However, the company, like other players in the sector, faces increasing challenges. The region's rough seas and strong ocean currents pose technical challenges, while protracted bureaucratic delays and legal battles by environmental groups are holding back exploration projects. These factors have reduced the attractiveness of offshore oil and gas prospects to international investors.
The announcement of the new drilling comes at a time when South Africa is seeking to diversify its energy sources and strengthen its footprint in oil and gas exploration. Success in these operations could not only consolidate TotalEnergies' position in the country, but also reinvigorate a sector in search of stability and confidence.
As the country looks to harness its offshore resources to support economic growth, the focus is now on TotalEnergies' ability to overcome the logistical, regulatory and environmental challenges that lie in its path.
