By Lehlohonolo Lehana.
TotalEnergies SE has quit its gas-condensate discoveries off the tip of South Africa, in a blow to a country that’s planning to use more of the fuel for power production.
The Group entered into Block 11B/12B in 2013 and made two gas discoveries, identified as Brulpadda and Luiperd.
The company has now exited the Brulpadda and Luiperd finds because “it appeared to be too challenging to economically develop and monetise these gas discoveries for the South African market,” TotalEnergies said in a statement on Monday.
The announcement followed an earlier withdrawal from Block 11B/12B by CNRI, which was TotalEnergies’s partner in the block.
In a statement, TotalEnergies indicated that the block could not be progressed to production as “it appeared to be too challenging to economically develop and monetise these gas discoveries for the South African market”.
At the same time, TotalEnergies also announced its decided to exit from offshore exploration Block 5/6/7, where it currently holds a 40% interest.
TotalEnergies still holds exploration rights, together with its various partners, over the Deep Water Orange Basin and Orange Basin Deep blocks, off the west coast, Outeniqua South, off the south coast, and in Block 3B/4B, east of the Deep Water Orange Basin block.
The news from Total 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 keep its upstream business and will retain 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.