French energy giant TotalEnergies has decided to exit several offshore blocks in South Africa, including Block 11B/12B.
The announcement follows a similar move by its partner CNR International (South Africa), a subsidiary of Canada’s CNR.
Go deeper with GlobalData
It comes after a review of options for its 45% stake in the block, which it acquired in 2013.
The company also plans to leave exploration blocks 5/6/7, where it holds a 40% interest.
TotalEnergies’ withdrawal coincides with QatarEnergy’s decision to exit its 25% interest in Block 11B/12B.
This decision was confirmed by Africa Energy, a partner in the joint venture.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUnder the joint operating agreement, the withdrawing parties’ interests are to be assigned free of charge to the non-withdrawing partners, proportionate to their existing stakes.
Africa Energy, through its investment in Main Street 1549, which currently holds a 10% interest in Block 11B/12B, has expressed its intention not to withdraw.
The company remains optimistic about the commercial viability of the block’s resources, despite the challenges and delays encountered.
The Brulpadda and Luiperd gas discoveries in Block 11B/12B are considered the largest in South Africa.
If developed, they could significantly contribute to the country’s energy transition away from coal-fired power plants.
However, TotalEnergies found these discoveries too challenging to develop and monetise economically.
In a statement, TotalEnergies said Brulpadda and Luiperd could “not be turned into a commercial development as it appeared to be too challenging to economically develop and monetise these gas discoveries for the South African market”.
The exit of TotalEnergies and QatarEnergy is contingent on receiving the necessary regulatory approvals from South African authorities.
If approved, Main Street 1549 is expected to hold a 100% interest in Block 11B/12B.
Africa Energy is now focusing on obtaining the production right approval for the block and securing offtake customers.
